PD Pasar Jaya to let 56 markets go it alone

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)