Two draft bills to be introduced

Two draft bills to be introduced

JAKARTA (JP): Proposals for bills on new parking fees and
congestion pricing are to be introduced in the near future,
according to the chairman of the commission in charge of city
revenue.

Helmy AR Syihab said yesterday that the two drafts should be
submitted to the City Council by early next year.

"So we hope that by next year all these new bills will be
effective," Helmy said, referring to four recently passed bills,
two under discussion and the expected regulations on parking and
congestion pricing.

The two drafts discussed by executives yesterday were on
increasing the price of city-issued labels, necessary for request
forms to obtain block plans from the city planning agency, and
possible fee increases of various city services.

The four bills passed are on the increased annual foreigners
tax; taxing consumers using electricity generators; the
entertainment tax; and the control of alcohol distribution
through raising distributors' license fees.

However both Helmy and Governor Surjadi Soedirdja have denied
that the content and speed of processing the new bills are
motivated by demands made by the project management unit of the
city's proposed subway (MRT).

A possible link between the new bills and the project was
raised because the council has never previously processed four
bills in one month. Also, proposals to raise revenues were
revealed in an April seminar on funding the MRT, contain
similarities to the new bills and drafts.

Construction of the US$1.5 billion Mass Rapid Transit project
from Blok M, South Jakarta, to Kota in West Jakarta, is scheduled
to begin next year.

Slamet Soelarno, a MRT executive, suggested in the seminar
that raising public funds would be part of efforts to meet the
required $25 million a year for the city's equity in the project,
and to pay back loans of around $35 million a year for 25 years.

The proposals to raise money from the public are re-activating
lapsed city rules on taxes, increasing existing taxes and fees,
and drawing fees or taxes on services which have never been
subjected to such payments.

Congestion pricing before and during construction of the MRT
was also suggested as one of the new ways to generate income.

Tb. M. Rais, the Deputy Governor for Development Affairs, has
acknowledged that congestion pricing during the rush hour on
heavily used roads will be one of the main components of public
funding for the MRT.

Another high-ranking source who requested anonymity said that
although the new bills need not be related to the MRT project,
"the proposals from (the management unit) are among those that
were taken into account in the drafting.

"It is natural that residents should contribute to the project
which will reduce their traffic stress," he said.

Helmy stressed the bills have been discussed for some time by
councilors and executives.

"As the public has begun to benefit from development progress,
more revenue is needed to fund maintenance of various
achievements," Helmy said. (anr)