Developer yet to clear way for market

Leony Aurora, Jakarta

City developer PT Jakarta Realty confirmed it was in the process of acquiring the necessary permits to build a wholesale shopping center at a site that was formerly part of the Melati dam in Kebon Kacang, Central Jakarta.

The vice president of the developer, Rusdi Yusuf, said in a written statement made available to The Jakarta Post that the developer had procured land clearance and land use permits, dated Sept. 10, 2003, and May 17, 2004, respectively.

"We expect the permits and environmental impact analysis to be issued in the near future," he said.

Governor Sutiyoso, after ordering last month's groundbreaking ceremony for the center to be delayed until all of the permits were obtained, said he had ordered his subordinates to process the permits.

The initial environmental impact analysis was submitted to the Jakarta Environmental Management Agency on June 18. The head of the environmental impact office at the agency, Ridwan Panjaitan, said it normally took four to six months to process an environmental impact analysis.

"The construction will commence after the permits are acquired," Rusdi affirmed.

The Rp 2 trillion (US$223.84 million) wholesale center, which will occupy 14.06 hectares of land, is scheduled to begin operations at the end of 2005 (not in November as previously reported).

When the Post visited the proposed site last Saturday, workers were building stone walls that stretched from a point close to The Ascott Hotel to a construction material shop near Jl. Kebon Kacang. About 80 percent of the walls looked to be completed.

On the cleared land stood at least four cranes and pile drivers. Dozens of piles were stacked up, along with large blocks of concrete.

Rusdi said the developer was only conducting loading tests at the site, under the supervision of the City Construction Supervisory and Regulatory Agency.

Residents in the area said the pile drivers had been at work for at least a month. "Sometimes we hear the hammering at night," said a woman who lives in the area.

The construction of the center, which is expected to be one of the largest wholesale centers in Southeast Asia with an expected 282,000 square meters of trading area, has been opposed by urban observers, who say it is too close to other markets.

Bylaw No. 2/2002 on private markets in Jakarta stipulates that a private market occupying more than 4,000 square meters of land must be built at least 2.5 kilometers away from all traditional or community markets.

The proposed wholesale center would be located less than one kilometer from the Tanah Abang textile market. Antara news agency reported that 300 vendors from the textile market rallied on Friday at the Hotel Indonesia traffic circle to demand that Sutiyoso retract the permits for the wholesale center.

Construction of the new center may also be delayed by land acquisition problems. Many residents say they have not reached deals with the developer regarding the compensation price for their land.

Siti Salmah, the wife of the head of neighborhood unit six in Kebon Melati subdistrict, said the developer was offering Rp 1.4 million per square meter of land. "We want Rp 20 million (per square meter)," she told the Post.

Another resident, Aad, who lives in a house he inherited from his father near Jl. Kebon Kacang, said he had not been contacted by the developer about his land.

"But I am sure we will have to move. They (the developer) will not want our houses next to their big store," he said, pointing to his modest house. Next to it stood a couple of shacks with piles of empty plastic cans in front.

"We will move, for the right price," he said without mentioning how much money he would accept for his land.