City to close down unprofitable markets<\/p>\n
Damar Harsanto, Jakarta<\/p>\n
Poor conditions and poor services have prompted city market
\noperator PD Pasar Jaya to close down some 50 non-lucrative
\ntraditional markets through a \"modernization\" scheme.<\/p>\n
\"In the future, I estimate PD Pasar Jaya will be financially
\nhealthy with only around 100 markets remaining operational in the
\ncity,\" PD Pasar Jaya president director Prabowo Soenirman said on
\nFriday at City Hall.<\/p>\n
In an initial phase, the operator will close down seven
\nmarkets, which are considered financial burdens. They are the
\nBlora, Karet Pedurenan and Kramat Baru markets in Central
\nJakarta; Sawah Barat, Prumpung and Cipinang markets in East
\nJakarta; and Kramat Jaya and Cilincing markets in North Jakarta.<\/p>\n
PD Pasar Jaya cannot afford to renovate the markets, which
\nwould cost an estimated Rp 8 trillion (US$889 million).<\/p>\n
According to Prabowo, the renovation of certain markets would
\nbe pointless anyway, as only a few vendors operated there, and
\nfew people went there to shop.<\/p>\n
\"There have been changes in some areas where our markets are
\nlocated. The changes forced us to reconsider whether the markets
\nwere still needed by the residents,\" he said.<\/p>\n
He used, as an example, Blora market, which has been quiet
\nover the last three years as, while it was once surrounded by
\nhouses, offices now stand in their place.<\/p>\n
\"We are planning to convert the market into offices or other
\ncommercial premises... We are also looking into the possibility
\nof cooperating with city companies for that purpose,\" he said,
\nadding that cooperation with city companies would help maintain
\nthe lower rental fees imposed on vendors and tenants.<\/p>\n
City companies will manage businesses relevant to their core
\nbusinesses.<\/p>\n
\"(City run developer) PT Jakarta Propertindo will manage
\noffices or apartments, while PT Jakarta Turisindo will handle
\nhotels and PD Pasar Jaya will maintain markets,\" he said.<\/p>\n
Critics say that city companies have overlapped in running
\ntheir businesses, as in the case of the construction of the
\nJakarta Wholesale Center at the former site of the Melati dam in
\nCentral Jakarta.<\/p>\n
The center, which will become the country's largest wholesale
\nmarket for textile products, will be developed by PT Jakarta
\nRealty, a joint venture of private company PT Agung Podomoro and
\nPT Jakarta Propertindo.<\/p>\n
Prabowo claimed that efforts to modernize city markets would
\nhelp the operator book more profit and improve its services to
\nthe vendors, as well as customers.<\/p>\n
PD Pasar Jaya only managed to book Rp 18 billion in profit
\nlast year. As for this year, the operator has aimed to generate
\nprofit of Rp 28 billion.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/city-to-close-down-unprofitable-markets-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}