Retailers seek insurance payments for riot damage<\/p>\n
JAKARTA (JP): Members of the Indonesian Retail Merchants
\nAssociation (Aprindo) whose premises were badly damaged during
\nthe recent social unrest are demanding insurance firms meet their
\nclaims for compensation.<\/p>\n
\"Without insurance compensation we cannot recover our losses
\nand recreate jobs for over 14,000 employees,\" the association's
\nexecutive director Kustarjono Prodjolalito told reporters
\nyesterday.<\/p>\n
Kustarjono said insurance firms must honor policies held by
\nretailers which have provisions for damage incurred during riots.<\/p>\n
He dismissed an earlier statement made by the Insurance
\nCouncil of Indonesia that the unrest was political in its nature
\nand therefore insurance firms were not obliged to pay out on
\nclaims for damage.<\/p>\n
\"We can ensure you that these acts were of a criminal nature,
\nit was robbery,\" he said.<\/p>\n
Most commercial property insurance policies in Indonesia
\ninclude a clause covering riot, strike, and malicious damage
\n(RSMD), but exclude damage resulting from politically motivated
\ndisturbances.<\/p>\n
Separately, the Association of Indonesian Insurance Brokers
\ncalled on insurance companies to pay damages to those who had an
\nRSMD clause in their policies.<\/p>\n
\"The recent riots in several cities ... were clearly not
\npolitical, but were a criminal act and reflected frustration at
\nthe effects of the monetary crisis,\" the association said in a
\nstatement yesterday.<\/p>\n
It said that statements made by the defense ministry and the
\nArmed Forces Commander Gen. Wiranto confirmed this, as did
\ncomments attributed to finance minister Bambang Subianto and the
\nState Minister for Empowerment of State Enterprises Tanri Abeng.<\/p>\n
Kustarjono said 90 percent of Aprindo's members were covered
\nby insurance.<\/p>\n
Jakarta was hit by four days of rioting, looting and arsons
\nwhich began on May 13 and resulted in damage of Rp 2.5 trillion.<\/p>\n
Aprindo announced yesterday that 33 of its members had lost a
\ntotal Rp 661.52 billion in looted goods and broken equipment
\nduring the riots. This figure does not include losses from
\ndamaged and burned properties.<\/p>\n
Kustarjono also said the figure did not include losses
\nincurred by retailers who were not members of Aprindo, including
\nthose located in the Glodok commercial area in West Jakarta, the
\nworst hit area.<\/p>\n
Lost earnings through being unable to open in the immediate
\naftermath of the riots have not yet been taken into account.<\/p>\n
The association said 125 stores and outlets belonging to its
\nmembers had been burned and 119 robbed and damaged.<\/p>\n
A total of 14,482 people are now without jobs because the
\nshops where they worked have been destroyed.<\/p>\n
Kustarjono said many retailers were unsure if they would
\ncontinue with their business in the country.<\/p>\n
\"This is both a material and psychological blow to us. It is
\nvery traumatic,\" he said.<\/p>\n
At least 10 Aprindo members plan to close their outlets and
\nleave the country, he added.<\/p>\n
Ethnic Chinese run much of the country's retail sector and are
\noften targeted during times of economic hardship.<\/p>\n
Ramayana Department Store suffered the worst losses last week.
\nTwelve of its stores were burned and 14 looted, causing Rp 150
\nbillion in damage. Four thousand of the companies employees are
\nnow out of a job.<\/p>\n
Hero supermarket, the country's largest supermarket chain,
\nsuffered a loss of Rp 140 billion. Six of its six outlets were
\nburned and 20 looted. Two thousand employees have lost their
\njobs.<\/p>\n
Six Matahari Department stores were burned causing damage of
\nRp 80 billion. Sabar Subur department store lost Rp 12 billion
\nwhen all four of its outlets were burned.<\/p>\n
Kustarjono said the companies were continuing to pay their
\nworkers, but said he did not know how long this could continue
\nwithout payments from insurance firms. (das)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/retailers-seek-insurance-payments-for-riot-damage-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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