Market construction delayed until developer obtains permit

Damar Harsanto, Jakarta

Governor Sutiyoso ordered on Tuesday a delay in the groundbreaking ceremony for the eight-story Jakarta Wholesale Center as developer PT Jakarta Realty has yet to obtain a building permit from the city administration.

The governor had been scheduled to officiate over a groundbreaking ceremony by the end of June for the 14.07-hectare market located at the site of the former Melati dam in Kebon Kacang, Central Jakarta.

He did not say when the groundbreaking ceremony would now take place but hinted that it would be after the July 5 presidential election. He also said the building permit was currently being processed by his subordinates.

The construction of the center has been criticized by activists, who argue that it conflicts with a city bylaw.

Bylaw No.2/2002 on private markets stipulates that a private market occupying an area of more than 4,000 square meters may only be built at least 2.5 kilometers away from a traditional or community market. It also stipulates that a private market must also be situated on one of the city's arterial routes.

The new center will be located less than one kilometer away from the Tanah Abang textile market on a four-meter-wide Jl. Kebon Kacang, which is not one of the city's arterial routes.

Sutiyoso has rejected the criticism, saying the construction was in line with the regulation.

"The area will become a business district and have integrated support facilities, including apartments. The area will be one of the largest business districts in Southeast Asia," he boasted.

The center will consist of a 282,000 square meter (sq m) trade center, a 28,500 sq m hotel and convention center, 38,000 square meters in offices, a 196,500 sq m parking area and a 16,000 sq m center for small and medium enterprises.

Jakarta Public Works Agency director Fodly Misbach said the construction of the center would be followed by the widening of Jl. Kebon Kacang.

"The land on either side of the road will be acquired to make way for a two-lane road. We are preparing another point of entry to the site."

The center is expected to start operating in November.

The site is owned by PT Jakarta Realty, a consortium whose members include city-owned developer PT Jakarta Propertindo and private developer PT Agung Podomoro. It is currently being used as a temporary parking lot and storage area for traders and buyers from the Tanah Abang market following the five-day fire that destroyed 2,420 kiosks in Blocks A, C and E of the market on Feb. 19, 2003.