Sealing of Kemang establishments halted for election

Sealing of Kemang establishments halted for election

JAKARTA (JP): The South Jakarta mayorality is to suspend
closing business establishments on Jl. Kemang Raya for the next
two months because of the election.

However checking business permits was to proceed, South
Jakarta Mayor Pardjoko said yesterday.

"We are having a cooling down period of around two months
because of the election," he said.

The closure of establishments found to lack permits or whose
permits expire within two months, is to begin immediately
afterward.

In a March 18 instruction Governor Surjadi Soedirdja ordered
city officials to return Kemang to a predominantly residential
area in accordance with the city's spatial plan. Only 15 percent
of the properties can be nonresidential in such areas.

Business concerns with complete licenses would be able to
continue operating only until their permits expired, he said. New
permits would not be issued until the plans' criteria had been
met, Surjadi had said.

No decision has yet been taken on which businesses will be
allowed to remain open.

Jakarta's head of the Museum and Restoration agency, Haswidi
Ahmad Taufik, suggested yesterday investors move to Kota, West
Jakarta, an ancient but idle tourist spot.

"We are inviting investors to help revitalize the area,"
Haswidi said, referring to the Kota revitalization project. He
added many ancient buildings had become warehouses.

Kota was very suitable for cafes, he said. In response to
comments that Kota was congested, he said people preferred to
visit cafes at night.

Minister of Tourism, Post and Telecommunication Joop Ave wants
the administration to provide new sites for Kemang businesses
which are to be closed.

Haswidi said that if investors moved to Kota they would be
granted permits for cafes and souvenir shops, as the area was a
nonresidential site. This would support the revitalization
program which was also aimed at promoting tourism, he said.

On Tuesday, business owners in Kemang said they had no choice
but to obey the orders provided similar a ruling was imposed on
other residential areas like Menteng, Central Jakarta, and
Kebayoran, South Jakarta.

Owners plan to hold a press conference today.

One of the owners of Jimbani Cafe and Restaurant, Bambang
Wiyogo, said the decision was unjust. He said the city should
have first discussed the issue with managements, as the
businessmen had invested a great deal of money in Kemang.

Chairman of PT Mandara Jasindo Sena, Maxi Gunawan, said, "I am
disappointed with the decision which is quite unrealistic,
shocking and unjust."

Maxi said he had invested more than Rp 1 billion (US$412,000)
to build and operate the one-month-old Maxi Cafe, including a
down payment for a five-year contract.

The owners requested the mayoralty to reconsider its decision
because closures would cause job losses and bad bank debts.

Bambang also regretted the officials' inconsistent policy on
issuing licenses for the establishments.

Bambang said around 120 employees from Jimbani would have to
be sacked. The Maxi Cafe has 70 employees who are facing the same
fate. (10)