Pasar Jaya to close seven markets

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.