Economic optimism leads to rebuilding of stores, markets

JAKARTA (JP): Almost 95 percent of destroyed retail business buildings in the city have been rebuilt following increasing optimism on the part of businessmen's attitudes toward economic recovery, a business association executive said on Tuesday.

Head of the Indonesian Retail Merchants Association (APRINDO), Kustarjono Prodjolalito, said most of the businessmen decided to rebuild their destroyed shops and kiosks, especially after witnessing how smoothly last June's general election had run and the new government which has been established.

"It has been widely accepted among the business community that an unsatisfactory general election would result in a chaotic situation in the country," he said.

He said the businessmen's optimism increased after noted Muslim leader Abdurrahman Wahid and Indonesian Democratic Party of Struggle (PDI Perjuangan) leader Megawati Soekarnoputri were elected as president and vice president, respectively.

Kustarjono said businessmen had for months just observed the political situation in the country and that most of them had kept their money parked in banks.

He said 15 big retail business buildings, such as department stores and supermarkets, had been burned or destroyed during the high political tension in the city over the past two years.

Some 125 stores were set on fire and 119 outlets vandalized and looted, especially during last year's mid May riots in the capital, leading to the downfall of then president Soeharto.

Reconstruction and renovation projects have been ongoing at many buildings, including at Plaza Slipi Jaya and shopping centers in the downtown Glodok area in West Jakarta, as well as small stores in the city's five mayoralties.

Prospective tenants

Separately, executive of the Indonesian Shopping Center Management Association, Stefanus Ridwan, said on Tuesday that shopping centers' occupancy rates had started to increase recently.

"Prospective tenants have started to resume their contracts, although people's purchasing power has yet to improve. But at least it has shown that business have started again," he said.

He, however, failed to give the exact figure on the occupancy rates.

Stefanus hinted that most of the shopping centers' management still had problems relating to insurance claims.

"We have received reports that they (businessmen) have yet to receive full claims for the damages of their buildings and belongings. We will hold a meeting to discuss the issue on Friday," he said.

Similar rebuilding activities were also carried out by the city administration as six of its traditional markets were burned during last year's riots, namely Cempaka Putih market in Central Jakarta, the South Jakarta markets of Cipete and Pasarminggu, Palmerah market in Central Jakarta, and Glodok and Perniagaan markets in West Jakarta.

Spokesman for city-owned market operator PD Pasar Jaya Ivo Edwin Aryanto said separately that the administration had received a Rp 68 billion (US$9.7 million) soft loan from the central government to rebuild four of the markets -- Cipete, Pasarminggu, Palmerah and Glodok.

"The reconstruction of Perniagaan market will be financed by the traders themselves because the damages are not so serious, while the Rp 2 billion rebuilding expense for Cempaka Putih market will be covered by PD Pasar Jaya," he said. (ind)