Economic optimism leads to rebuilding of stores, markets

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)