Indonesian Political, Business & Finance News

Private parking operators's plan to file lawsuit impresses no one

| Source: JP

Private parking operators's plan to file lawsuit impresses no one

JAKARTA (JP): People queued up on Wednesday to criticize a
plan by private parking operators to file a lawsuit against the
city administration over parking fees, saying it was groundless.

Contacted separately, city officials, a councillor and an
observer strongly believed that the businessmen grouped in the
Communication Forum for Private Parking Operators (FKKPPS) would
lose in any battle at the Jakarta State Administrative Court
later.

"It's obvious that they have violated a decree," Deputy
Governor for Economic and Finance affairs Fauzi Alvi Yasin told
reporters.

Sharing the view, executive director of the Regional
Empowerment Study Center (LPPD), Ali Wongso Sinaga, said: "It's
clearly stipulated in Law No.14/92 on Traffic and Government
Regulation No.43/93 that the city administration has the
authority to set parking fees."

"The governor also has the authority to issue licenses for all
private parking operators. I think they haven't carefully read
all the articles in the regulations," Ali, a former city
councillor, said.

Members of the communication forum decided on Tuesday to file
a lawsuit against the city administration over the new parking
fees, which are much lower than those currently set by private
operators.

Based on Gubernatorial Decree No. 1698/1999, since May 1 this
year parking rates have been officially set at Rp 1,000 for the
first hour in busy areas and Rp 500 in less busy places.

Although the city administration has already postponed the
implementation of the decree once -- it should have been adopted
last year -- many owners and operators of parking lots in
shopping and business centers in the capital have refused to meet
the call.

They, instead, are sticking with their previous rates, which
are at least double the official rate.

The city administration has threatened to seal parking booths
and machines at private parking lots if the operators refuse to
charge the lower parking fee.

The City Parking Agency has sent its first warning letters to
10 defiant operators, mostly those under the management of Secure
Parking. Those who do not respond could see their equipment
sealed off on May 22.

Private parking operators have seemed to link the problem of
parking fees to their responsibility to share their revenues with
the city administration as stipulated in Article 28 of City Bylaw
No.5/1999 on parking.

The operators have also refused to meet the city
administration's calls to register their businesses, saying that
the governor has no such authority.

City councillor Tjuk Sudono from the National Mandate Party
(PAN) faction said privately owned parking lot operators were
afraid of losing revenues if they complied with the new fees.

"But it means that they are getting their revenues by
violating the law and people's rights," he said.

Actually, he said, motorists were not required to pay parking
fees as stipulated in the Law No. 14/1992. The law states the
responsibility of building owners to provide parking facilities
to the public is one of requirements of obtaining a building
permit.

Tjuk said operators who had been hiding behind Law No.18/1997
on Regional Taxes and Levies had no grounds at all to do so.

"Which article are they talking of? The law was designed to
apply to places such as weigh bridges and was aimed at keeping
the price of the nine basic staples down.

"So it has nothing to do with private parking," he said.

City administration spokesperson Muhayat called on the
operators to put the contribution problem aside for the moment.

"Let's just think about people who have to pay such expensive
fees. That's why the city administration has set a fee of only Rp
1,000," he said. (09/nvn)

View JSON | Print