Investors give cold shoulder to Kramat Tunggak conversion

JAKARTA (JP): The city administration is keeping a standing invitation open for investors to convert the Kramat Tunggak red- light district in North Jakarta into a shopping complex, an official of the city social services agency said on Friday.

The official, who asked not to be named, said offers were made to several private companies, but only PT Nuansa Jasa Realtindo (PT NJR) expressed interest.

The city administration and PT NJR reportedly explored the possibility of cooperation in turning Kramat Tunggak into a business area.

He admitted that PT NJR expressed doubts during the last stage of negotiations due to skyrocketing prices of building materials.

"The investor also found difficulty in raising funds from banks due to the economic hardships," he said.

Last August, PT NJR proposed to develop a shopping complex on the site.

The firm planned to begin the project with the construction of shop-houses, followed by hotels and other facilities by 2000.

Meanwhile, Waluyo, head of the prostitution rehabilitation section of the city social agency, said the lack of interest from investors would not disrupt the completion of the rezoning plan as scheduled by December.

"We will continue to turn the red-light district into a residential area by opening all the complex gates by Dec. 31 this year," he told The Jakarta Post.

Waluyo characterized negotiations with PT NJR as at an early stage and said the firm was conducting project feasibility studies.

"The company is still calculating how much money the company will pay brothel owners as compensation."

Brothel owners own half of the land with the rest belonging to the city administration, he said.

The 10.4 hectare complex is located near Tanjung Priok Seaport in North Jakarta.

The country's oldest official red-light district has 221 brothels and about 1,600 prostitutes and brothel owners living in the complex.

The city administration has conducted vocational training -- including sewing, cooking and hairdressing -- since October last year to prepare the prostitutes to take up new careers.

A total of 640 prostitutes have completed the vocational training and been returned to their hometowns, mainly in West Java and Central Java.

"We will send another 320 prostitutes to their hometowns by the end of June," said Waluyo.

He added that the authorities would not tolerate the rehabilitated women returning to prostitution.

"We will take stern measures against them in accordance with the law."

Prostitutes and brothel owners warned that closing the complex would not stop the practice.

"The closure will only spark illegal prostitution practices in the city," said Eddy, the owner of Nuri 25 brothel, on Friday.

Atun, a prostitute at Tepang Sono 82 brothel, said prostitutes would start soliciting on the city's streets if the complex shut its doors.(asa)