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)