City urged to revoke levy on indoor ads
City urged to revoke levy on indoor ads
JAKARTA (JP): Operators of major shopping centers in Greater
Jakarta urged the city administration on Saturday to abolish a
levy on advertisement billboards and banners inside their
premises.
An executive of the newly established Association of
Indonesian Shopping Center Operators (APPBI) said the step was
badly needed by the operators to help lower their tenants'
operational costs, in an attempt to keep them running their
business during this time of hardship.
"The abolition of the levy for indoor ads at shopping centers
would truly help the tenants and in turn would help us, the
operators," APPBI chairman M. Sjohirin said during the
association's inauguration.
Sjohirin, who is the general manager of PT Plaza Indonesia
Realty, the operator of Plaza Indonesia shopping center, gave no
details of the levy.
According to a 1989 city regulation, the amount of the levy on
indoor advertisement varies, depending upon location, size and
type.
A company installing a billboard inside a shopping center at
the city's prestigious area on Jl. Sudirman, for example, must
pay Rp 100 per square meter per day.
A banner or sticker is, of course, cheaper.
A cigarette or alcoholic drink company must pay extra.
But, the levy for indoor advertisements is much cheaper than
those for outdoor promotions.
Besides asking for the levy's abolishment, the shopping center
operators also demanded state-owned gas distributor PT
Perusahaan Gas Negara (PGN) to use the local currency, instead of
the U.S. dollar, in charging tenants, particularly restaurants
and cafes, for its gas.
The other alternative, Sjohirin said, was that PGN could still
charge dollars for its gas but at a lower conversion rate.
The shopping center operators, for example, charge their
tenants in dollars but the rate is only between Rp 3,000 and Rp
5,000 against one dollar, he said.
Under the current monetary crisis, charging tenants in dollars
based on the existing currency rate would only burden their
businesses, he said.
According to Pondok Indah Mal manager Hartawan H. Mariyono,
shopping center operators and tenants in the capital were facing
serious financial difficulties due to skyrocketing operational
costs.
On the other hand, he added, the people's buying power has
dropped drastically.
Hartawan admitted that most shopping center operators here
have had difficulties in gaining profits nowadays.
"We are just trying not to suffer any losses," he said.
Worse, he said, the number of tenants is tending to decrease
because of this difficult situation.
"But we always try our best to keep the remaining tenants and
find new ones," Hartawan said.
He admitted that many foreign retailers were willing to open
their stores here.
But so far, they are still waiting to see the situation in the
country.
"They are still not sure about the security here," Hartawan
said.
Both Hartawan and Sjohirin could not predict when business at
shopping centers would recover.
Many shopping centers are still packed with visitors,
especially on weekends but, apparently, many of them go to malls
and plazas only for window shopping.
The association's inauguration ceremony on Saturday was also
witnessed by the Ministry of Tourism, Arts and Culture's Director
General of Arts and Culture W.J. Pranoto.
Sjohirin said APPBI has also received guarantees for the
security of its members from the Jakarta Military Command.
Dozens of shopping centers were burned and looted during mid-
May riots.
APPBI members include those who manage Plaza Indonesia, Pondok
Indah Mal, Ciputra Mal, Daan Mogot Mal, ITC Roxy Mas, Lippo
Supermal, Megamal Pluit, Plaza Glodok, Puri Indah Mal, Taman
Anggrek Mal, Sunter Mal, Kelapa Gading Mal, ITC Mangga Dua, Blok
M Mal, Cinere Mal, Depok Mal, Kalibata Mal, Plaza Blok M,
Ambassador Mal, Atrium Plaza, Gajah Mada Plaza, Jakarta Design
Center, Pasar Festival, Plaza Senayan, Lippo Cikarang and
Metropolitan Mal. (jun/bsr)