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.