City urged to negotiate with Glodok merchants
City urged to negotiate with Glodok merchants
JAKARTA (JP): A city council commission urged the city
administration yesterday to meet with the owners of shops along a
pedestrian walkway in Glodok, West Jakarta, to settle a dispute
between the merchants and the private company which recently
acquired the property.
The chairman of commission B for economic affairs, Abdulgani
Abdullah, said the West Jakarta mayoralty and the city-owned
market company, PD Pasar Jaya, should hold a meeting with the
merchants to discuss the recent hike in their rent prices.
The commission held a special meeting yesterday with officials
from the West Jakarta mayoralty and PD Pasar Jaya, who
transferred the management of the area to private company PT
Binacitra Tataswati.
Abdulgani denied accusations that the appointment of PT
Binacitra Tataswati is illegal.
He said the city council approved the appointment last year
after the shopping center was returned to PD Pasar Jaya from the
previous management company PT Jembatan Metro Inc.
"In the approval letter we also recommended that the private
company pay Rp 3.2 million (US$1,488) per square meter over a
period of 20 years to the city administration," he said.
In 1979 PT Jembatan Metro Inc. was given a contract to manage
the shopping center for 15 years, during which time the owners
paid a total of Rp 30 million for each 7.5-square-meter shop.
When asked if the price set by PT Binacitra is too high,
Abdulgani said it is based on supply and demand and not of the
council's concern.
One hundred shopowners in Glodok are suing the city
administration and PT Binacitra Tataswati for raising their rent
on the walkway, which will force them to choose between paying a
huge sum or leaving their shops. PT Binacitra plans to ask them
to pay between Rp 20 million to Rp 22 million per square meter
over a period of 20 years.
The prices are too high, say the merchants, who have urged the
city administration to terminate the management contract of PT
Binacitra.
The shopowners also mentioned their apprehension over rumors
that the construction of a freeway connecting Cinere and Kota is
scheduled to start next year, which could mean the demolition of
the pedestrian walkway.(yns)