Malls cut rental rates

JAKARTA (JP): Local retailers and mall managements agreed yesterday to set the U.S. dollar's exchange rate at between Rp 2,750 and Rp 3,500 for shop rents, Minister of Industry and Trade Tunky Ariwibowo has said.

The rate will be effective indefinitely, Tunky said yesterday.

The chairman of the Indonesian Association of Retail and Shopping Center Companies, H.J.A. Sinungan, said the companies would further discuss which rates they would use, but that they would not exceed a limit of Rp 3,500 to the dollar.

The dollar has appreciated by nearly 300 percent since last July. It was sold at Rp 7,200 yesterday, up from Rp 2,450 mid last year.

Almost all managements of shopping centers charge their tenants in dollars. (das)