Wed, 03 Dec 1997

4,000 workers in Kemang face dismissal

JAKARTA (JP): The closure of 122 businesses -- including cafes, restaurants and furniture shops -- in Kemang, South Jakarta, is expected to affect about 4,000 workers, a city councilor said yesterday.

The workers face dismissal if the municipality goes ahead with its plan to restore the area to a residential site, Fatommy Asaari, head of the Golkar faction, said.

The 122 businesses are among the 180 ventures which violate land use regulations.

He said the workers' status was unclear because they were still registered as employees but did not have jobs.

The owners of the businesses are apparently hopeful that the municipality will change its plan.

Fatommy urged the municipality to find alternative jobs for the employees if it planned to crack down on deviations to land use permits in Kemang.

City administration data shows that 90 percent of Kemang properties are used for commercial purposes, far in excess of the 15 percent permitted by city regulations.

"So far the municipality's decision is based on a technical point of view, mainly how to restore Kemang to its original purpose as a residential site.

"But the city forgets about the social and economic consequence that may arise, such as the future of the 4,000 workers who earn a living there."

The Jakarta administration announced last month that it would proceed with a plan to close down 180 businesses in Kemang for failing to comply with building permits and land use regulations.

Only 41 commercial businesses in Kemang, which hold commercial site permits, would be allowed to continue operating.

"The city should not just close down the businesses in Kemang, without paying any attention to what is happening to the employees," he reiterated. "After all, it is actually the city's fault as it was not consistent in apply the land use regulations in the area."

Fatommy said the city has a responsibility to help relocate the workers.

The municipality has been criticized for its lack of forethought, considering the ever-changing nature of Jakarta, especially its dealings with several land use alteration matters, such as those in Kemang.

"The municipality must be realistic in finding a solution for Kemang. The existence of cafes and restaurants there, for instance, reflect the demand of an urban society."

Fatommy said the only "fair" solution was to relocate the commercial sites to one part of Kemang.

"For instance, build a special area for furniture businesses, cafes or restaurants. Right now all of the businesses are mixed together, causing chaos."

Kemang residents have special characteristics and needs, so the relocation site should not be too far away.

"Many of the residents are retirees who eventually opened businesses to earn money. They will lose their business, go bankrupt and be forced to sell their place to someone else.

"And someone who buys the place may try and do the same thing by turning it into a commercial site. It's a vicious circle."

Lukman Mokoginta from the Indonesian Democratic Party faction also expressed his support for creating a business district in Kemang.

"The municipality must come up with an idea for how to relocate the businesses. Don't let them die. Commercial sites such as cafes and restaurants are needed by the people.

"Moreover, that kind of business will help the city get revenue, mainly from tax collection."

The controversy over Kemang was sparked when the former governor, Surjadi Soedirdja, issued an instruction dated March 18 to crack down on Kemang businesses that violated the building permits.

Kemang businesspeople have reacted angrily to the city's decision to close them down, saying that it is unfair and should be reconsidered.

They claim to be "victims" of the municipality's previous decision to allow Kemang to "develop" into a commercial zone. (edt)