Council threatens to punish Indomaret
JAKARTA (JP): The City Council threatened on Wednesday to take legal action against the management of Indomaret minimarket for twice ignoring the council's summons.
A member of the City Council's Commission B for economic affairs, Agus Dermawan of the National Mandate Party (PAN), said the council would issue the last summons to the company for a hearing to be held in response to protests lodged by small vendors.
"We will take legal action if they fail to show up for the third time," Agus told dozens of small traders who went to the council to renew their protest at the operation of the minimarket.
Article 20 the council's standing order stipulates that government officials and private parties should comply with the council's summons.
Article 21 says that failure to meet the summons could be considered a contempt of the City Council and violators face punishment. The standing order does not specify the punishment.
Agus questioned the existence of Indomaret, a franchised minimarket, saying that more than 70 percent of hundreds of its outlets operating here are owned by PT Indomarco, a subsidiary of the giant conglomerate Salim Group.
He also claimed that about 30 outlets were operating without proper permits.
The visiting traders, grouped under the Greater Jakarta Small- scale Traders Association, complained that the minimarkets have sparked unfair competition because they are located close to the small traders who have been operating for years before the minimarkets came.
One of the traders, Marah Sakti, claimed that the minimarkets sold their merchandise cheaper than the market price and that many traders had gone bankrupt as a result.
"We have lost many customers although we only set a 5 percent profit for each item we sell," Marah, who owns a shop in South Jakarta, told reporters.
The traders also accused the minimarkets of selling the products of Salim Group, such as instant noodle and milk, at a lower price.
Currently, some Indomaret minimarkets are run under a franchise scheme by residents in housing complexes. There are 269 Indomaret outlets across Jakarta.
Each outlet, which has an average width of between 60 and 200 square meters, supplies communities with basic needs from 10 a.m. to 10 p.m. daily.
However, there has been speculation that most of them have yet to obtain a building utilization permit (IPB), authorizing a change of use from a residence to commercial premises.
Gubernatorial Decree No. 50 of 1999 stipulates that every privately run market measuring less than 200 square meters must obtain a basic license from the City Secretary.
Furthermore, the minimarket must obtain a business permit from the Jakarta office of the Ministry of Industry and Trade, and a security permit from the City Public Order office. (jun)