The management and evaluation of flats retribution rates in Surakarta City, Indonesia

Abstract

PurposeSurakarta needs to evaluate its flat management as the most populous city in Central Java, Indonesia. This study examines the implementation of flat management in Surakarta City and evaluates and recommends the appropriate flat retribution rate.Design/methodology/approachThis study used the analytical descriptive method to explain the problems in managing flats in Surakarta City. The data were obtained through a review of existing regulations and in-depth interviews with the flat residents and managers. The proposed retribution tariff for flats is calculated with a market approach through a comparison with neighboring cities and/or districts adjusted to the regional minimum wage to accommodate the residents’ ability to pay.FindingsBased on the results of interviews and a review of regulations, problems were identified in the management of flats in Surakarta City. A comparison of levy rates with surrounding districts led to a proposal for new levy rates, which were divided into two tariff groups based on the characteristics of flats in Surakarta City.Research limitations/implicationsThe result of this study is a suggested retribution tariff derived from an economic framework that has yet to be validated by assessing the flat residents' willingness to pay.Originality/valueThis paper complements previous studies on the management and financing of flats by more in-depth evaluating the current tariffs and providing recommendations for appropriate tariffs.