Developer yet to clear way for wholesale center

Developer yet to clear way for wholesale center

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, a resident 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, said he had not been contacted by the
developer about his land. "I am sure we will have to move. They
(the developer) will not want our houses next to their big store.
We will move, for the right price," he said without mentioning
how much money he would accept for his land.