Driving Revenues: How Makassar Raya Parking Sets Its Financial Targets

Abstract

This study focuses on the financial management of parking revenues in Makassar City, particularly as it pertains to the standards set by Raya Regional Parking Company, City of Makassar. The aim is to scrutinize the established revenue targets and the actual implementation of parking tariffs, considering the Local Regulation No. 17 of 2006 and the financial relationship between central and regional governments as stipulated by Indonesian Law No. 1 of 2022. The research employs a qualitative methodology to delve into the intricacies of revenue management, compliance with parking locations, and the setting of parking tariffs. Primary and secondary data sources, including interviews with officials from Makassar Raya Regional Parking Company, City of Makassar, and other stakeholders, provide a foundation for the study. The interactive and ongoing analysis model facilitates the data reduction, presentation, and conclusion processes. Findings indicate that there is a discrepancy between the set revenue targets and actual realizations, with parking tariff enforcement demonstrating weaknesses, especially with unofficial parking attendants charging inconsistent fees. The study reveals that while annual targets are based on detailed revenue potential evaluations, quarterly reviews highlight shortcomings in achieving these goals. The study suggests the need for stricter enforcement and monitoring of parking management to meet revenue and dividend targets. Implementing an electronic parking system and incentivizing attendants to meet or exceed targets may enhance performance and revenue management. The collaboration with city government can align parking regulations with strategic revenue management goals while serving public interests.