Pasar Jaya ends ties with tardy developers

JAKARTA (JP): City-owned market operator PD Pasar Jaya has severed agreements with two private developers for the renovation of two traditional markets because the projects were lagging behind schedule.

City councilor Djafar Badjeber, head of Commission B for economic affairs, said on Friday that PT Budi Mitra Inti Sejati and PT Budi Propertindo Perkasa would no longer be entrusted to renovate the three-story Jembatan Lima market in West Jakarta and the two-story Petojo Ilir market in Central Jakarta, respectively.

"The developers, who were expected to finish the renovation projects by 2000, have only finished renovating the foundations of the buildings as of this date," Djafar said.

"Governor Sutiyoso received an urgent letter from Minister of Home Affairs Syarwan Hamid, dated Oct. 12, stating that no more delays should be made on renovations and the matter should be solved as soon as possible."

"The minister is very concerned about the fate of the 1,000 kiosk owners, who have been forced to go back to selling on the streets due to this mess."

Pasar Jaya spokesman Lihardin Sipayung said earlier the results remained unsatisfactory even though his company had permitted the developers to reduce the scope of their renovation work.

"Both the developers and Pasar Jaya had even agreed that the reduction in the number of facilities to be renovated was intended mainly to enable them to save their funds.

"As the two developers have come up with too many excuses, we feel terribly sorry for the small traders if the developers don't finish the renovations on time."

Lihardin said Pasar Jaya proposed to the governor that "Pasar Jaya's own developers (be used) to continue the renovations.

"In any case, we are not going to impose any penalties on the developers since they have spent a lot as well in renovating the foundations."

Lihardin said Pasar Jaya was also renovating two other markets partly or totally burned in the May riots.

"We have started with the Cipete and Pasar Minggu markets in South Jakarta. What's left are the Palmerah market in Central Jakarta and the Perniagaan and Glodok markets in West Jakarta."

Renovation has been completed on Cempaka Putih market, also burned during the rioting.

According to PD Pasar Jaya data, respective costs to renovate the Cipete and Pasar Minggu markets were expected to reach about Rp 9 billion (US$1.2 million).

Renovation of Palmerah market is estimated at Rp 13 billion, Perniagaan market at Rp 2.6 billion and Glodok market at Rp 27 billion.

Perniagaan market accommodated the highest number of traders with 1,728 kiosks, followed by Glodok and Palmerah markets with 1,457 and 1,029 kiosks respectively. Cipete had 630 and Pasar Minggu was the site of 133. (ylt)