Entrepreneurs want levies on roadside traders abolished

JAKARTA (JP): The Association of Indonesian Small and Medium- Sized Entrepreneurs (KUKMI) has demanded that the Jakarta administration stop collecting levies from sidewalk vendors in the capital unless they want to see the outbreak of more riots like those that rocked the city in May.

The association's chairman, Prya Ramadhani, said levies were collected by city officials under various pretexts, including sanitation and security, and unfairly burdened street traders during the current hardships.

The Golkar-affiliated organization estimated that officials collect at least Rp 2.5 million (US$227.30) a day from roadside vendors in the capital's five mayoralties.

Ramadhani said the city is home to at least 500,000 sidewalk traders. Every day each trader has to pay between Rp 1,500 and Rp 5,000 to city officials.

"I have sent letters to the city authorities complaining about those who impose levies on impoverished traders and they said that no instruction to collect money from traders had ever been issued by the governor or his deputies.

"It's only certain lower-ranking city officials who have taken it upon themselves to do the job," Prya said on Thursday.

He asked the city authorities to immediately end the practice because the vendors are suffering badly at the hands of the economic crisis.

Riots

"If the authorities do not pay attention to the fate of these vendors, I think there will be more riots similar to those that occurred in May because small businessmen will reach breaking point soon and will be unable to tolerate the practice any longer," he said.

According to Prya, officials collecting levies told vendors that they came from subdistrict offices, district offices and mayoralty offices in the city. Some security officers were also involved in the practice, he added.

Gubernatorial Decree No. 134/1998 stipulates that 10 kinds of levies applicable to sidewalk vendors, including fees charged for site permits, have been canceled.

Prya said that he had instructed vendors to refuse to pay the levies from now on.

"I suggest traders resist all attempts at coercion, even if officials try to force them to pay" he said. (ivy)