City collects Rp 5.8 billion from shopping center owners
City collects Rp 5.8 billion from shopping center owners
JAKARTA (JP): An official of the city economic affairs bureau
said yesterday that the funds collected from shopping center
owners throughout the city had reached about Rp 5.8 billion
(US$2.63 million) since 1983.
The official, who asked not to be named, said that the funds
were collected under Gubernatorial Decree No. 240, which
stipulates that owners of shopping centers must set aside 20
percent of their total shopping area for small-scale traders.
Alternatively, shopping center owners can elect not to set
aside the space but to pay, instead, a certain amount of money to
the city administration by way of paying compensation. The
official did not give details about how this compensation is
calculated.
"About Rp 2.5 billion of the total funds collected since 1983
have been used to finance various programs, including market
renovation and training courses for small-scale traders," he
said, during a visit to the Roxy Mas International Trade Center
in West Jakarta with members of the City Council.
The councilors visited the International Trade Center complex
to inspect the area set aside there for small-scale traders.
The official explained that, so far, four markets had been
renovated using the funds: the Cililitan market in East Jakarta,
the Galur market in Central Jakarta and the Rawa Badak and
Kalideres markets in West Jakarta.
He said that the city administration would use the remaining
funds to construct five new markets in the Kenari, Benhil and
Blora areas in Central Jakarta, the Klender area in East Jakarta
and the Santa area in South Jakarta.
Abdulgani H. Abdullah, one of the councillors, said the city
administration should cease the collection of funds in lieu of
the provision of floor space.
"It would be better if building owners gave small-scale
traders some space, so as to guarantee them shelter," Abdulgani
said.
He said that even though the funds are used to develop new
markets or to renovate old ones, small-scale traders are forced
to wait until the construction or renovations are completed.
Abdulgani welcomed the International Trade Center's
management's decision to set aside part of its floor space for
small-scale traders, even though the designated area is still
less than 20 percent of its total floor space.
Of the 12,200 square meters allocated for retail activities at
the International Trade Center, 1,498 square meters are reserved
for small-scale traders. The developer has paid Rp 123 million to
the city administration for the difference between the space
provided and the 20 percent required under the decree. (yns)