Indonesian Political, Business & Finance News

City mulls comercial conversions

| Source: JP

City mulls comercial conversions

Damar Harsanto, Jakarta

The Jakarta administration is considering whether to allow part
of upscale residential area Kebayoran Baru to be converted into a
commercial area, as proposed by businesspeople.

"There is a possibility (of the conversion), but we have yet
to make any decision," assistant to the City Secretary for
Development Affairs IGKG Suena told The Jakarta Post on Thursday.

Citing a preliminary survey in the area carried out by the
Jakarta Planning Agency, Suena said some must be retained for
residential use, while other parts could be used for business
purposes.

"We must not ignore dynamic changes in the area, which we
hadn't thought about before, such as development along Jl. Wolter
Monginsidi, for instance. Otherwise, the changes will get out of
hand," Suena added.

South Jakarta Mayor Dadang Kafrawi said on Wednesday that
there were 27 locations in the area that had been proposed by
businesspeople for conversion to business uses, including Jl.
Dharmawangsa, Jl. Wijaya, Jl. Panglima Polim and Jl. Wolter
Monginsidi.

If the administration approved the conversion, businesspeople
there would be required to pay more tax as a consequence, Suena
said.

A field check by the Jakarta Public Order Agency shows that
more than 300 homes have been converted into business premises in
Kebayoran Baru.

The check was made in an attempt to regularize the status of
private homes that are being used for business purposes.

Besides Kebayoran Baru, the administration also aims to
prioritize the regularization of converted homes in Pondok Indah,
South Jakarta, and in Menteng, Central Jakarta, as residents
there have complained of nuisances caused by business activities,
including increased traffic congestion and noise.

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