Land clearance underway for traders' relocation

JAKARTA (JP): The municipality is still negotiating a price for the land at Kebon Jati market it plans to use to relocate hundreds of roadside vendors from Tanah Abang market.

"We expect the price will be based on the city-set land price rate," said Central Jakarta Mayor Abdul Kahfi after attending a ceremony introducing the 30 finalists for the Abang and None Jakarta (Mr. and Miss Jakarta) Contest.

The decision to relocate the Tanah Abang street vendors to the 4,000-square-meter plot at the Kebon Jati market on Jl. Kebon Jati in Central Jakarta was formalized in a governor's instruction, the mayor said.

"We expect the relocation will be completed this year," Kahfi said.

The decision to relocate traders was taken because of the increasing space traders at Tanah Abang market occupied, he said. They overflowed onto the streets, causing chaos for pedestrians and motorists.

"At the new site, sidewalk vendors will no longer hinder the traffic," Kahfi said.

He also said that no decision had been taken whether sidewalk vendors would be charged fees at the new site.

According to the government's deregulation package, which was announced last month, fees from roadside vendors are no longer included in a list of charges collected by the municipality.

The package, however, still needs approval from the Ministry of Home Affairs after consultation with the Ministry of Finance.

If it is approved, the city would lose at least Rp 2 billion (US$800,000) a year in fees from vendors. In the 1996/1997 fiscal year Rp 2.07 billion was collected from roadside vendors.

Sidewalk vendors, however, are pessimistic that the new deregulation package would free them from being asked by city officials to pay illegal levies for running business on the streets.

The daily fees for registered vendors vary between Rp 500 and Rp 2,000 per trader, depending on the merchandise and the space occupied by the vendors.

Illegal fees, however, are sometimes as much as Rp 3,500 a day. This includes Rp 2,000 for the authorities in charge of the Tanah Abang market, Rp 1,000 for sanitation and Rp 500 for security. The fees are collected from traders who are not yet registered or those selling goods in protected areas.

City public order office data reveals there are 9,346 registered, legal, street vendors trading at 259 different sites in the capital.

It is estimated there are almost 41,000 unregistered, illegal, vendors.

However, the number is probably higher during festivals, such as Ramadhan and Idul Fitri, when additional vendors, including temporary residents, shop owners and even office employees, take advantage of the enormous crowds.

Most of the roadside traders, both legal and illegal, sell their goods in crowded markets in Central and East Jakarta. (ste)