Fri, 04 Jul 2003

Secure Parking defends new rates

JAKARTA: Secure Parking, the largest operator of city off- street parking, insisted on Thursday that it would not cancel the new rates for private parking, though it has been threatened with a lawsuit over the unilateral increase.

"The tariff increase is the decision of the association. We are just the operator. We raised the rates unilaterally because it is what the owners of buildings want," Secure Parking spokesman Jani Ana Septa Hardiwinangoen was quoted as saying by Antara.

However three days ago, the company's general manager, Tony Tjuatja, told a hearing with City Council that the operator would return the old charges on Tuesday.

On Thursday, Tony confirmed the new prices were decided by the owners of buildings in order to cover the maintenance cost for their parking lots.

Jani said the 100 percent increase of the parking rates followed the market mechanism and the imposition of tax on parking operators.

"If the charges remain Rp 1,000 per hour for cars, what will happen to our employees," he added.

Under the new rate enforced on June 2, cars are charged to pay up to Rp 2,000 per hour and motorcycles Rp 1,000.

The council declared the increase illegal and demanded that it be canceled, otherwise the company could face a lawsuit. --JP