Estimating Profits in the "Profession" of Illegal Parking Attendants

It is estimated that illegal parking attendants can earn up to tens of millions of rupiah per month in citations.

AGUIDO ADRI

Soleh (54), a parking attendant at a minimarket in Kelapa Dua, Kebon Jeruk, West Jakarta, was tidying up customers' vehicles on Saturday afternoon (23/10/2023). Despite the minimarket's sign stating free parking, Soleh and his friend remained persistent.

Illegal parking attendants are estimated to earn collection fees of up to tens of millions of rupiah per month. Recently, the existence of illegal parking attendants has been in the public spotlight. Some members of society are starting to feel uncomfortable with the increasing number of illegal parking attendants in various places they visit. In addition to the legal status being questioned, the public also questions where the parking fees they give actually go.

The existence of illegal parking attendants is considered to be increasingly disturbing to the public when some of them set parking rates arbitrarily without a clear regulatory basis. Moreover, quite a few illegal parking attendants get angry and force them if they are not paid (Kompas.id, 3/5/2024). It is not surprising that some people consider illegal parking attendants to be like thugs who practice illegal levies freely.

Public rejection of illegal parking attendants was recorded in the Kompas poll on 20-22 December 2021. The results of the poll showed that at least 84.2 percent of respondents stated that they did not agree with the existence of illegal parking attendants. Meanwhile, no less than 73.5 percent of respondents also firmly stated that illegal parking attendants actually disturb them.

Security forces responded to the unrest by carrying out control operations. One of the operational objectives that is a priority is illegal parking attendants in the minimarket parking area. According to the Head of the DKI Jakarta Transportation Service, Syafrin Liputo, parking in front of minimarkets should be free, i.e. not charge a penny. In fact, the management is not allowed to collect parking fees from its customers (Kompas.id, 3/5/2024).

Also read: Eradicating Illegal Parking Attendants in Minimarkets, DKI Transportation Agency Collaborates with Satpol PP

KOMPAS/RHAMA PURNA JATI

The condition of the sidewalk which is cramped with illegal parking in front of the Kalibata City apartment, South Jakarta, Sunday (3/3/2024). Pedestrians feel disturbed by this activity.

Even though they are often hostile to the public and chased by the authorities, in fact illegal parking attendants still survive and are even mushrooming. However, the illegal parking attendant "profession" provides job opportunities for anyone. This is because the only main prerequisite for being able to become an illegal parking attendant is being physically fit.

His job is relatively easy and simple, namely directing, organizing, and maintaining parked vehicles. However, it is not mandatory, as there are no standard rules binding unlicensed parking attendants in carrying out their work.

Very profitable

Apart from all these conveniences, the main reason behind the existence of illegal parking attendants is of course related to the amount of income which can be said to be very tempting. To be able to calculate the estimated income from illegal parking attendants at minimarkets, you first need to know the number of daily visitors to a minimarket. In this case, Kompas R&D uses data from at least 12 different studies (Lestasi, P. I. 2021; Siregar, H. F. A, Sampurna, D. S. 2020; Hati, P. D. P. 2023; Vilitomo, W. 2022; Mandaras, F. 2016; Hafidza, S. S. 2022; Waturandang, M. M. O., Widiatmika, I. N. 2017; Kevin ; Waliulu, F.H. 2017).

Based on the available data, it is known that on average, a minimarket can be visited by up to 277 people per day. The minimum number of visitors is nine people per day, while the maximum number is 840 visitors per day.

Next, it is assumed that 90 percent of minimarket visitors use motorized vehicles, while the remaining 10 percent walk or ride a bike. From the number of motorized vehicle users, a ratio between those using motorcycles and cars needs to be found. Based on the research thesis by Retyaningsih from the Islamic University of Indonesia in 2018, it is known that the average proportion of vehicle types used by minimarket visitors is 90 percent motorcycles and 10 percent cars.

Thus, it can be assumed that an average minimarket can be visited by 224 motorcycles and 25 cars per day. The parking fee charged by the parking attendant for motorcycles is usually IDR 2,000 and IDR 5,000 for cars.

Using this assumption, it can be estimated that a parking attendant at a minimarket can earn around Rp 573,000 per day or Rp 17,190,000 per month. If a minimarket is guarded by two illegal parking attendants, each can earn Rp 8,595,000 or nearly three times the average Provincial Minimum Wage throughout Indonesia in 2024.

Also read: The story of a stealth parking attendant in the courtyard of a Jakarta minimarket

In the quietest condition, which is around nine visitors per day, the minimum estimate of an illegal parking attendant's income at a minimarket is around Rp 570,000 per month. However, if using the maximum estimate with 840 visitors per day, illegal parking attendants can bring home up to Rp 52,200,000 per month. With minimal capital, such as a vest, hat, and whistle alone, this income is certainly very profitable for illegal parking attendants.

It should be noted that this calculation is still only a rough estimate due to the limited availability of data. To produce more precise calculations, accurate data is needed regarding the number of visit frequencies and vehicle volumes based on their types in minimarkets.

Similarly, this can at least provide an illustration of the amount of money generated from the illegal parking services in minimarkets. Considering that usually the money from illegal parking goes into the pockets of certain individuals, this will certainly be a big loss for the local government.

Local government losses

Parking lots are one of the sources of funds for local governments. In the UU Number 1 of 2022 policy on Financial Relationships between the Central Government and Local Governments, it is stipulated that local governments can make parking lots a source of regional original income (PAD) in three forms.

The first is to designate parking services as an object for Certain Goods and Services Tax (PBJT). The government sets the maximum PBJT rate for parking services at 10 percent. PBJT payments for parking services are made by providers of parking spaces or vehicle parking services (valet) who charge parking fees to consumers.

Next, local governments can directly charge parking fees to parking users through public service and business service fees. As it is done directly by the government, the fee collectors are required to provide a regional fee determination letter (SKRD) in the form of a ticket or other document that is equivalent to the parking lot user. From this regulation, it is clear that illegal parking attendants who charge parking fees without an official ticket do not contribute anything to the regional revenue.

Also read: Waiting for the Government's Role in Overcoming the Problem of Illegal Parking Officers

KOMPAS/FERGANATA INDRA RIATMOKO

Vehicles of homecoming travelers that stopped at Malioboro Street were parked at the Abu Bakar Ali Parking Building in Yogyakarta, Friday (12/4/2024). Some of the travelers took the opportunity to go sightseeing on Malioboro Street before returning to their hometown after celebrating Eid-Al-Fitr.

Yogyakarta city can serve as an example of how the potential revenue for the region ends up in the pockets of illegal parking attendants. Based on data from the Yogyakarta City Government in 2022, there are 179 minimarkets spread across 14 districts.

Using the same calculation model and assuming that only 70 percent of minimarkets are guarded by illegal parking attendants, the potential turnover of money from illegal parking practices in minimarkets in Yogyakarta City could reach Rp 26.2 billion per year. This amount is already nearly double the entire local revenue (PAD) of Yogyakarta City in 2023 from the parking sector, which is Rp 14 billion.

The potential value of illegal parking is surely a major loss for both society and the government. Money from the public, therefore, does not flow into the regional treasury that can be utilized for various public interests, but instead enriches a handful of illegal parking attendants who have no legal basis.

Collaboration alternative

Amidst various operations to tackle illegal parking attendants, the government can actually collaborate with third parties as parking managers to prevent potential revenue loss to irresponsible parties.

For example, the Yogyakarta City Government has a scheme for revenue sharing between the local government and parking operators. This is regulated in the Yogyakarta Mayor Regulation No. 149/2020 on Guidelines for the Implementation of Yogyakarta City Regulation No. 2/2019 concerning Parking.

Based on the rules, the revenue-sharing scheme between local governments and parking management is divided into three zones. Ranked from Zone I, II, and Zone III, the profit-sharing ratio is 60:50:40 percent for the local government and 40:50:60 percent for the parking management.

Also read: Illegal Parking Still Rampant in Jakarta, Improving the System is Crucial

KOMPAS/RADITYA HELABUMI

Scenes like this are common in many parking areas in the DKI Jakarta region. The DKI Provincial Government has implemented an increase in parking taxes for parking lot operators, from originally 20 percent to 30 percent.

If the Yogyakarta City Government decides to cooperate with a third party to collect parking fees in minimarkets, based on this scheme, the local government can obtain additional revenue of Rp 16 billion - Rp 10.6 billion per year. This is certainly much better than the potential revenue being collected by illegal parking attendants who cannot account for their earnings.

While waiting for government efforts, the public can start to increase their firmness in not giving money to illegal parking attendants. If illegal parking attendants force or even threaten and use violence, the public can report them to the police using Article 368 of the Criminal Code. Based on this policy, extortion committed by illegal parking attendants can be punished for up to nine years.

The existence of illegal parking attendants has disturbed the comfort of the wider community and has harmed the revenue of the local government. However, if we examine it more deeply, their existence cannot actually be separated from the difficulty of finding decent-paying jobs. If that is the case, the only best solution to eradicate illegal parking attendants is by creating as many job opportunities as possible with open access and a fair wage. (LITBANG KOMPAS)