Private firm objects to Pasar Jaya decision

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)