Private firm objects to Pasar Jaya decision

JAKARTA (JP): A private construction firm protested on Saturday city-owned market operator PD Pasar Jaya's decision to appoint a state-owned construction firm to rebuild gutted Glodok market in West Jakarta.

PT Bangun Cipta Kontraktor (BCK), said state-owned PT Pembangunan Perumahan, was ineligible to bid for the project because it had not settled its debts with the Indonesian Bank Restructuring Agency (IBRA).

"PT Pembangunan Perumahan had to settle debts of some Rp 8.8 billion (US$1.1 million) before it could join the bid for the project," company executive Triadi Abimanyu said at a media conference.

"How can a company, which is under the agency's supervision, win the bid? We demand PD Pasar Jaya cancel its decision."

Pasar Jaya's director Syahril Tanjung announced last Monday the awarding of the project to Pembangunan Perumahan, which bid Rp 42.61 billion.

It was the lowest among the bidders, followed by state-owned construction firm PT Adhi Karya (Rp 42.8 billion) and BCK (Rp 45.4 billion). The owner's estimate was Rp 50.2 billion.

PD Pasar Jaya stipulated in its invitation to bid late last year that bidders were excluded if they were on the agency's debtors list.

Triadi said he filed suit at the Jakarta State Administrative Court (PTUN), challenging PD Pasar Jaya's decision to appoint PT Pembangunan Perumahan.

"We received the court's pretrial verdict on Friday ordering PD Pasar Jaya to stop all of its activities on the Glodok market project while the court investigates the case.

"We also asked the court to appoint PT Bangun Cipta Kontraktor as the project's bid winner as we are not included in IBRA's list of debtors." He said PT Adhi Karya was also included on IBRA's list of debtors.

Glodok market was one of six city-owned markets destroyed in the May 1998 riots which were earmarked for reconstruction. The others were Palmerah market in Central Jakarta, Perniagaan market in West Jakarta, Cipete and Pasar Minggu markets in South Jakarta, and Cempaka Putih market in Central Jakarta.

The other markets have been renovated, except for Perniagaan whose operation was subsequently considered no longer feasible.

The renovation of the markets was funded with a Rp 60 billion special loan from the Ministry of Finance, as ordered by then president B.J. Habibie after he visited the markets on May 26, 1998.

City councillor Santayana Kiemas of the Indonesian Democratic Party of Struggle (PDI Perjuangan) faction, who was also present at the media conference, said his faction challenged the use of the special loan to rebuild the Glodok market, which is located in Chinatown in Kota.

"The Glodok market has high commercial potential. Why don't we invite private investors to rebuild the market? I'm sure a lot of interested parties will bid for the project," he said.

PD Pasar Jaya suffered Rp 56 billion in losses when 13 of its 152 markets suffered various degrees of damage in the rioting and looting.(nvn)