Fire: A familiar visitor to Jakarta's markets

Fire: A familiar visitor to Jakarta's markets

The Jakarta Post, Jakarta

Last Saturday morning, Richo, a kiosk owner in the Melawai Market
in Blok M, South Jakarta, noticed people measuring the area; the
kind of activity that often takes place prior to a construction
project proceeding.

Two days later, fire engulfed the market, destroying over
1,000 kiosks, including Richo's. The fire also displaced 1,500
traders and inflicted economic losses of at least Rp 750 billion
(US$75 million).

Amid the bustle of recovering what they have left from the
blazing buildings, traders could not help but think that the
incident had something to do with a planned renovation of the
market.

"It is just too much of a coincidence. They (the market
operator) had just posted a notice of renovation on walls," said
Richo, pointing to a letter from PD Pasar Jaya in front of a
kiosk.

The notice, dated Aug. 11, required traders to submit their
permits for re-registration in line with the Melawai Market
renovation program for 2005 and 2006.

Pasar Jaya president director Prabowo Soenirman confirmed the
renovation plan on Monday. The new market, he said, would include
a residential compound.

"Considering the value of the land, we plan to make a mixed-
use complex on this 2.1 hectare area. The upper levels will be
for apartment units and a hotel, but the lower part would still
be for a modern market," he said.

Later on, Prabowo denied the plan. "It is not true. It will
still be a market," he said, as quoted by Antara on Wednesday.

Meanwhile, Governor Sutiyoso emphatically denied that the fire
had anything to do with the renovation plan.

As for the planned apartment units and hotel, Sutiyoso said
that he would not intervene.

"As long as it still makes sense and the vendors can still do
business there, there should be no problem," he said.

Melawai is not the only market in the Greater Jakarta area
that has been burned to the ground just prior to major renovation
work; work that often receives strong opposition from traders.

In January 2003, 111 kiosks in Senen Market in Central Jakarta
were destroyed by fire. The Senen area is currently being
redeveloped a new planning project.

In February 2003, fire burned down a large portion -- some
2,200 kiosks -- of Southeast Asia's largest textile market, Tanah
Abang in Central Jakarta. Before that fire, traders were also
aware of a renovation plan for the market.

Sutiyoso confirmed the plan for the Tanah Abang Market,
explaining that it aimed to increase the capacity of the market.
He also denied allegations that the plan had anything to do with
the fire. Police have been unable to determine the cause of that
fire.

Two years later, a 14-storey air-conditioned modern market
stands on the site. According to Kompas daily, old traders were
allocated four-square-meter kiosks in the basement and on the
first to seventh floors of the new building. They each had to pay
Rp 20 million per square meter for these kiosks.

Despite the decreasing business, vendors in Melawai Market
reported a gradual increases in the monthly fees they have to pay
to the market operator.

"We were told that there would be a gradual increase of 100
percent in monthly fees, starting in 2003 until the end of this
year," said Richo.

Before the raise, a vendor had to pay Rp 17,500 per square
meter, or an average of Rp 175,000 per month. Vendors who
normally occupied a 3 meter by 3.5 meter kiosk now have to pay
between Rp 400,000 and Rp 595,000 per month.

"That is why traders were slowly leaving the place. It become
too expensive for them have to pay Rp 8 million a year to the
kiosk's owners," he said.

"We do not mind the renovation plan but we are concerned by
how much it will cost us to move into the new kiosks once the new
building has been completed," said a trader Amris.

I-box
Fires in Greater Jakarta markets

1994:
Aldiron Plaza at Melawai, Blok M, South Jakarta. The building has
not functioned normally since the fire.

Jan. 26, 2003:
Senen Market , Central Jakarta. The fire burned down 111 kiosks.
Senen area is currently under a new planning project.

Feb. 22, 2003:
Tanah Abang Market, Central Jakarta. Fire burned down at least
2,200 kiosks. Currently the area has evolved into a modern market
with a 14-storey building standing on the site of the destroyed
textile markets.

Aug. 24, 2005:
Kemiri Muka Market, Depok. Fire destroyed 592 kiosks. Depok city
administration had planned to turn the market into a modernized
one in 2002, but vendors opposed the plan fearing that they would
not be able to afford the prices of the new kiosks.