Council supports rise in mall service fee

Council supports rise in mall service fee

JAKARTA (JP): City Council has backed a move by the management
of Mal Mangga Dua to increase the service fee paid by tenants in
the West Jakarta mall.

The new charge is Rp 9,000 (US$2.7) per square meter per
month, up from Rp 5,000, the head of City Council's Commission B
for Economic Affairs, Djafar Badjeber, said Thursday.

The price was set at a meeting at the City Council Thursday
between management, PT Duta Pertiwi and councilors. Tenants did
not attend the meeting.

The management was represented by its director, Harijono
Jonggowisastro, and general manager, Rano Jap.

Djafar said the new price was "reasonable compared to other
malls".

He said the management showed him lists of service fees of
other malls to compare the price: Mal Puri Indah in West Jakarta
is $8 per square meter per month, Pasar Pagi retail center in
West Jakarta is Rp 11,000, Mal ITC in West Jakarta Rp 17,500 and
Mal Pondok Indah in South Jakarta is $8.

Last week, traders from the mall sent a deputation to the
council to complain about the management's original plan to
increase the fee to Rp 12,000 per square meter per month, and
about management's lack of consultation with them.

Representatives told the council at that meeting that traders
would agree to pay Rp 6,000.

Djafar said the decision to set the price at Rp 9,000 was a
compromise. "We can't press them too much."

He added that management had agreed at the meeting to stop
using strong-arm techniques to force traders to pay increased
fees.

Early this month, traders said management cut off the
electricity to 50 tenants and deployed dozens of security
officers to intimidate them. (ind)