Pasar Jaya to close seven markets

Damar Harsanto, Jakarta

Jakarta market operator PD Pasar Jaya plans to close seven of its markets that have fared poorly in attracting a high number of visitors and vendors and convert them into alternative facilities.

"We have a program this year to close down seven markets, which are currently in poor condition due to ageing. We also plan to convert them for other uses, including apartments," PD Pasar Jaya president director Prabowo Sunirman said on Friday.

He argued that Pasar Jaya could not afford the estimated Rp 8 trillion (US$888 million) renovation cost of old market buildings.

Last year, Pasar Jaya only managed to book a Rp 11 billion net profit.

Out of the city's 153 markets, Prabowo said, 93 markets -- including the seven selected for closure -- needed either partial or complete renovation, as they had already exceeded their 20- year life span.

The seven markets are: Blora, Karet Pedurenan and Kramat Baru, all in Central Jakarta; Sawah Barat, Prumpung and Cipinang, all in East Jakarta; and the Kramat Jaya and Cilincing markets in North Jakarta.

"The vendors at the markets that are to be closed will be transferred to nearby city markets," he said, adding that the city market operator was now in discussions with city developer PT Jakarta Propertindo.

Promising to provide better services, Pasar Jaya also announced that it would gradually increase rent on its kiosks by up to 300 percent over the next five years. Rental fees are dependent on the markets' locations.

"Starting on June 1, we will raise the rent by an average 70 percent.

"We target to boost our contribution this year to the city by Rp 26 billion from the planned rental fee increase," Prabowo said.