Riot-hit shopping centers unlikely to open for weeks

Riot-hit shopping centers unlikely to open for weeks

JAKARTA (JP): Most of the 119 shopping centers which were
looted and vandalized in the May 14 riots will not reopen for
another one or two months, an official said.

Executive director of the Indonesian Retail Business
Association Kustarjono Prodjolalito said Wednesday that stores
which suffered extensive damage would take much longer to reopen.

"The common problem is whether the owner has the capital left
to resume business and whether the distribution of goods has
returned to normal," Kustarjono said.

Press reports said the riots had impacted on the distribution
system as many producers, still traumatized by the widespread
looting, remained wary.

"But retailers such as super stores, which sell frozen goods
but had their freezer system and equipment destroyed, will have
to wait for at least five months before resuming their operations
because they must order new equipment from overseas. Again, it
requires a lot of money," Kustarjono told The Jakarta Post.

All affected retailers were awaiting insurance payouts to
rebuild their businesses.

Thirty-three association members reported total losses of Rp
661.5 billion (US$66 million) in looted goods and damaged
equipment alone.

Separately, an executive of PT Hero Supermarkets, one of the
largest supermarket chains in Indonesia, said the firm had
reopened outlets on Jl. Gatot Subroto, South Jakarta, and
Ciputat, Tangerang, which were looted and vandalized in the
riots.

"Gatot Subroto and Ciputat supermarkets have already been
fully restocked and are trading as normal," the firm's president
director and chief executive officer, Ipung Kurnia, said.

Another eight outlets, which were damaged but not burned, are
expected to reopen in four weeks.

Six Hero outlets were gutted during the riot, namely those in
Cempaka Putih, Ciledug, Kebon Jeruk, Kalimalang, Pulomas and
Modernland.

"Fortunately, no Hero staff were injured and we have extensive
riot insurance for all our supermarkets, buildings, plants and
stocks," Ipung said.

Forty-seven of Hero's 71 supermarkets throughout Indonesia are
located in Greater Jakarta and 16 of the outlets here were
damaged or destroyed.

In a related development, the city-owned market management
company PD Pasar Jaya is assessing damaged and destroyed markets
to determine whether they need restoring or rebuilding.

Head of City Council Commission B for economic affairs Djafar
Badjeber said yesterday it would be six months before consultants
for the firm made their recommendations.

"As the process is taking place, we hope Pasar Jaya will make
use of any available space to accommodate the displaced traders,"
he told reporters after visiting Palmerah market in Central
Jakarta.

Thirteen of the city's 152 markets were destroyed during
massive riots two weeks ago which caused Rp 56 billion (US$5.6
million) in losses. Seven of the markets were either totally or
partly burned. (cst/ivy/ind)