Sat, 03 Sep 2005

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.