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)