Council queries new Kenari market
JAKARTA (JP): The City Council is questioning the development of a new marketplace by a private company adjacent to the old Kenari market, which specializes at selling electrical appliances.
"The construction of the new market is feared to deprive traders in the old market of business because both will be selling the same things," the chairman of the City Council's Commission B on finance, Abdulgani Abdullah, said.
Abdulgani was speaking yesterday during a coordination meeting with the management of the city Market Authority, PD Pasar Jaya, officials from the Central Jakarta mayor's office and City Hall.
The new four-story market building is being constructed by PT Yakin Maju on a plot of land owned by the state-run pawn company, which borders the southern section of the old Kenari market.
Abdulgani said that many electrical appliance traders from other parts of the city, such as Glodok and Pasar Pagi, have already bought space at the new market.
The developer is selling space on the ground floor of the new market at Rp 15 million (US$6,887) per square meter. Space on the other three floors costs Rp 10 million per square meter.
Unhealthy
"We are concerned about this matter because the opening of the new market could lead not only to unhealthy competition between the traders in the new market and those who are doing business in the old market because they will sell the same commodities, but also to a probable decrease in the revenue received by PD Pasar Jaya," Abdulgani said.
He also pointed out that the development of the new market is in violation of a gubernatorial decree which prohibits private companies from building marketplaces within a radius of 500 meters from a traditional market managed by PD Pasar Jaya.
"Moreover, the building permits for the structure state that only the ground and first floors are allocated for stores, while the rest is for office space," Abdulgani added.
He urged the city administration not to issue building use permits to the developer of the new building if it is to be used for selling electrical appliances.
The Kenari market, which is now in dilapidated condition, is famous as the largest market specializing in selling electrical appliances, not only in the Jakarta area but in other provinces all over Indonesia as well.
PD Pasar Jaya plans to renovate the dilapidated market but the implementation of the plan, drawn up in 1988, has been delayed due to strong opposition from traders over the financing of the refurbishment.
Along with the renovation, the city administration also plans to build a direct road connecting Jl. Cikini to the west and Jl. Salemba Raya to the east.
"The new road will pass by the northern section of the market," Abdulgani said. (yns/has)