PD Pasar Jaya to let 56 markets go it alone

JAKARTA (JP): City-owned market operator PD Pasar Jaya will convert the 56 government-supported markets under its management into self-supported ones by April 1, in expectation of doubled revenue, officials said on Thursday.

"The planned conversion will give advantages to traders although there will be consequences," head of the City Economic Development Office's market and small enterprises development section Indrianto said at his office.

"While the converted markets will provide more legal certainty to traders, the latter will have to pay higher levies for maintenance."

Levies at government-supported markets are set at Rp 210 (3 US cents) and Rp 270, while levies at self-supported markets will be hiked to Rp 500 and Rp 520. The levies depend on the size of the kiosks and the types of merchandise sold.

"Traders could use the kiosk licenses on self-supported markets as collateral to apply for loans from banks, while kiosks at those government-supported markets, widely known as Pasar Inpres, cannot," Indrianto said in citing a benefit.

"Government-supported markets were constructed in the 1976/1977 and 1983/1984 fiscal years by the central government under a presidential instruction, or Inpres." He said the markets belonged to the city administration even though they were financed by the central government.

Indrianto said total investment was about Rp 17 billion and the city administration had debts of some Rp 300 million to the central government.

"We expect to settle all debts in 2001," he said.

Interviewed separately, PD Pasar Jaya's director Syahrir Tanjung said revenue from the 56 markets was Rp 5.4 billion, while the operational costs reached Rp 7 billion last year.

"PD Pasar Jaya has to provide a monthly subsidy of Rp 100 million to the 56 markets. The markets are expected to draw funds of Rp 9.7 billion in the 2000 fiscal year after the conversion by stopping the subsidy and charging higher levies to traders," he said.

"There are 25,960 kiosks registered at the government- supported markets. Of this, 1,107 kiosks are still vacant, while another 2,500 kiosks are irregularly used."

Councillor Amarullah Asbah of the Golkar Party faction praised the planned conversion, but asked PD Pasar Jaya to pay more attention to small traders.

Amarullah, who chairs the council's Commission C on financial affairs, urged PD Pasar Jaya to carefully consider its plan to increase the levies.

"The company must consider the traders' ability to pay. It's fine with me if the company can't meet its revenue target as long as it protects the small traders' interest," he said. (nvn)