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Pasar Jaya ends ties with tardy developers

| Source: JP

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)

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