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)