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.