Most traditional markets unable to turn a profit
Most traditional markets unable to turn a profit
Damar Harsanto, The Jakarta Post, Jakarta
Most of the 151 traditional Jakarta markets managed by PD Pasar Jaya were incapable of making a profit, the city-owned company's spokesman Ivo Edwin Haryanto said Thursday.
Massive maintenance costs on the aging buildings were eating up most of the markets' revenue, he said.
Ivo said 55 percent of the markets were more than 20 years old.
"The maintenance costs balloon while PD Pasar Jaya's income remains stable as we are constrained by the gubernatorial decree which forbids us to impose a higher fee," he told The Jakarta Post on Thursday, referring to the gubernatorial decree No. 71/1996 on PD Pasar Jaya.
Management of each traditional market has imposed Rp 1,500 (US cent 15) for each kiosk owner per day. With the smallest number of kiosks available in a market of 72, PD Pasar Jaya is expected to earn more than Rp 489,240,000 per month or Rp 5.87 billion per year.
As a city-owned company, PD Pasar Jaya is required to prioritize public service over profit.
But Governor Sutiyoso and city councillors have frequently lambasted the body for its low contribution to the city administration's coffers.
Last year, PD Pasar Jaya only contributed Rp 3.5 billion to the city revenue. This unaudited figure is a significant jump from the 2000 contribution of Rp 2.5 billion and 1999's contribution of Rp 2.4 billion.
As well as the aging buildings, some markets have suffered financial losses and need to be subsidized by profitable markets.
Blora market in Central Jakarta, Cilincing market in North Jakarta and Cidodol market in South Jakarta are among the cash- strapped markets. They have received financial support from surplus markets including Tanah Abang, Tomang, Senen market in Central Jakarta and Kramat Jati and Jatinegara market in East Jakarta.
Head of the Blora market management, Herry Subiyanto, revealed he had been forced to transfer four of his eight staff to other markets to help ease the cost burden.
"We must offset our staff with the work volume," he said, adding that now he had to manage two story-market building, located on a 2,863 square-meter area, with three staff.
Only 35 percent of the 208 rented kiosks at the Blora market were occupied.
The market has been losing customers for some years because the administration turned Dukuh Atus and Setiabudi from residential zones to office centers.
"With such a gloomy outlook, we will continue in the red unless we boost efficiency by cutting unnecessary spending," Herry said.
When the Post visited, the Blora market looked vacant. Only a few stalls were open, while the number of visitors was much fewer than the vendors.