City market firm to focus on market reconstruction
JAKARTA (JP): The city-owned market company, PD Pasar Jaya, has said that it will focus its attention on reconstructing old, dilapidated market buildings rather than erecting new ones over the next five years.
"The company's top priority is to reconstruct existing market buildings, not to build on new property" said Lihardin Sipayung, a spokesman for the company.
Sipayung told The Jakarta Post yesterday that during the last five years the company has reconstructed 11 out of a total 162 traditional markets under its management all over the city, such as the Jatinegara, Kampung Ambon, Tomang Barat, Hayam Wuruk Indah Lindeteves, Pademangan Timur, Kramat Jati, Tanah Abang, Pasar Minggu and Pondok Labu markets.
"This year we will only reconstruct one market, the one in Klender, East Jakarta," Sipayung said.
He added that the reconstruction programs included the use of a modern piling system for the building foundation, the introduction of a better layout of kiosks, and the provision of additional facilities, such as telephones and better parking lots. This is with the idea of making the markets more commodious and to attract more shoppers, so as to increase the markets' competitive edge against those built by private companies.
"The purpose of the reconstruction program is to improve our services to tenants, and to visitors as well because we depend on them," Sipayung said.
"We make profit from the rents paid by the tenants," said Sipayung, adding that in 1993 the company's profit totaled Rp 2.16 billion (US$993.99 million), up Rp 66 million from the previous year. There are 70,508 traders operating in 162 traditional markets under the company's management.
Sipayung said that reconstructions are financed by the company, not by private developers as in the past. He refused to mention the amount of funds needed for the reconstructions.
Competition
When asked about tight competition with supermarkets and department stores in line with the mushrooming of large retail outlets owned by private companies in the city, Sipayung said that the company is not concerned because PD Pasar Jaya has a particular function and specific customers.
"Our mission is to serve middle and low income bracket people, not high income earners like the supermarkets' or department stores' clientele," Sipayung said.
He added that therefore PD Pasar Jaya does not oppose the development of modern markets or shopping centers because, as a capital city, Jakarta needs those facilities.
"The rapid growth of development has improved people's finances and changed their shopping habits which can be fulfilled by those modern shopping centers," he added.
But he said that private companies should obey the city regulation prohibiting them from developing market buildings within a 500 meter radius of traditional markets owned by PD Pasar Jaya.
"There will be no problem as far as they obey the regulation," Sipayung said.
He stated that cheaper rent is another advantage of traditional markets under company management. "There are traders who pay only Rp 500, or Rp 1,000 per month in our markets," he said. (yns)