Wed, 22 Jan 1997

Jaya Real Property to rebuild razed Senen building

JAKARTA (JP): Publicly-listed PT Jaya Real Property will begin rebuilding Block IV and V of Senen shopping center in June, the company's executive director said yesterday.

The old center was destroyed by fire in November last year. Executive director Tanto Kurniawan said the new center would be better designed, use higher quality materials and have a better safety system.

"The new building will accommodate traders whose kiosks were burnt down by fire," Tanto said, stressing that no newcomers would be allowed to occupy the new building.

He said the company would need between six and eight months to completely restore Block V, but would take longer to rebuild Block IV, which was totally destroyed. He said completion on Block IV was expected by late 1998.

Tanto declined to reveal the cost of reconstruction but said he expected insurance compensation would cover the expenses.

"The two buildings were insured for Rp 43 billion (US$18 million) by a consortium of local insurance firms," he explained.

Both blocks were managed by Jaya Real Property, a subsidiary of the PT Pembangunan Jaya, 40 percent of which is owned by the municipality.

There were about 300 kiosks in the four-story Block IV and 900 in the eight-story Block V before the fire.

Jaya Real Property also planned to start building another 599 makeshift kiosks to accommodate hundreds of electronics and car spare-parts traders whose shops were burned down.

Tanto said Jaya Realty had finished setting up 240 makeshift kiosks in the center's parking lot for clothing, bag and textile traders, as well food sellers.

"Traders only have to pay between Rp 2,500 and Rp 3,100 per kiosk per day," he said.

About 750 shops were razed by the fire, which lasted 17 hours. Lack of water sources, small alleys and many types of rolling doors were among difficulties faced by firefighters.

According to the Central Jakarta mayoralty, there were 786 traders who rented a total of 1,389 kiosks in Senen shopping centers, with many traders renting more than one unit.

"Due to the limited space, each kiosk owner will be given only one makeshift kiosk, provided they have signed and paid the contract," he said, adding that kiosk owners would stay at the new kiosks until the end of their terms.

Tanto called on kiosk owners to pay more attention to safety guidelines. "The building's safety is also their responsibility. That's why we ask each kiosk to have a fire extinguisher," he added. (04)