Bylaw on private markets to be enforced
Bylaw on private markets to be enforced
The Jakarta Post, Jakarta
Despite the opposition of business associations to a new bylaw on
private shopping markets, the city administration promised on
Monday that the bylaw, which favors small-scale traders, would be
enforced.
"Their opposition came too late because the bylaw has been
approved by the City Council," Governor Sutiyoso said before
attending a plenary council session on taxation.
Sutiyoso warned the business associations to obey the bylaw,
particularly the obligation of market operators to provide
between 10 percent and 20 percent of the space in their markets
for small-scale traders.
He threatened to punish association members if they refused to
obey the bylaw.
Last week, four business associations -- the Indonesian Real
Estate Association (REI), the Shopping Center Management
Association (APPBI), the Indonesian Property Management
Association (AMPRI) and the Indonesian Retail Businessmen
Association (APRINDO) -- announced their opposition to the bylaw.
"The regulation will frighten away businesspeople from
investing here," the associations said in a joint statement.
The bylaw, which was approved last month, is based on
Gubernatorial Decree No. 5/1998 on private shopping markets.
Unlike the decree, however, the bylaw carries a penalty for
violators.
A market operator who violates the bylaw faces a maximum
sentence of three months in jail or a maximum fine of Rp 5
million (US$555). The administration can also revoke a market
operator's operation permit.
City councillors voiced their support for Sutiyoso's tough
stance.
"If they don't like the bylaw, they can invest their money
outside Jakarta," councillor Agus Dharmawan of Commission B for
economic affairs said.
Agus, who represents the National Mandate Party, said the
bylaw aimed at empowering small-scale traders, and had been
discussed with the Jakarta chapter of the Indonesian Chamber of
Commerce and Industry before its approval last month.
In the gubernatorial decree, a market operator is allowed to
pay a fee to the administration for the development of small
businesses, if it does not want to provide space in its market
for small traders.
"This fee could lead to corruption so we decided to revise it
(the stipulation)," Agus said.
According to the bylaw, a "private market" measuring between
200 square meters and 500 square meters must provide 10 percent
of its space for informal traders. Markets measuring more than
500 square meters are required to provide 20 percent of their
space for small traders.
Agus also said a requirement in the bylaw requiring shopping
centers to hire locals was meant to provide employment for local
residents and to avoid "social jealousy".
The business associations charge that allotting space for
small-scale traders would create disorder in shopping centers.
The associations also deplored the requirement on hiring local
employees, saying it violated the rights of other job seekers.
Last week, residents of Bekasi demonstrated in front of a
department store to protest what they said was its failure to
hire local people.