Indonesian Political, Business & Finance News

Second chance urged for home businesses

| Source: JP

Second chance urged for home businesses

Damar Harsanto, Jakarta

In an effort to regularize the status of private homes that have
been converted into commercial premises, South Jakarta Mayor
Dadang Kafrawi has proposed to Governor Sutiyoso that the land
use functions of 27 residential areas in the municipality be
converted to business and commercial functions.

"Businesspeople are seeking the conversion of Kebayoran Baru
from a residential area into a business and commercial area. We
have submitted a proposal in this regard to the governor," Dadang
said after a meeting with Governor Sutiyoso and businesspeople
running commercial enterprises from their homes in the upmarket
Pondok Indah residential area in South Jakarta.

Among the 27 areas are Jl. Dharmawangsa, Jl. Wijaya, Jl.
Panglima Polim and Jl. Wolter Monginsidi.

"The proposal is being discussed by a team comprising
officials from the Jakarta Planning Agency and the Jakarta
Construction Supervision and Regulation Agency (PPB)," Dadang
said.

Sutiyoso declined to comment. "I have yet to read the
proposal."

He reiterated his policy that the use of homes for business
and commercial purposes needed to be regularized.

"We will not allow residences to be turned into business
premises, especially when they have not obtained operating
permits," he said.

Given that many of the converted homes have actually obtained
operating permits from different city agencies, Sutiyoso said the
administration would investigate on a case-by-case basis
following complaints lodged by the public.

The administration has prioritized the regularization of
Kebayoran Baru and Pondok Indah in South Jakarta, and Menteng in
Central Jakarta, as many people have complained that the
converted residences cause traffic congestion and noise in these
neighborhoods.

Data from the Jakarta Public Order Agency shows that more than
500 homes have been converted into business and commercial
premises in the three areas.

City spokesman Muhayat said the administration might allow
private medical practices and playgroups to continue in existence
as they were relatively less disruptive.

"However, we will ban doctors from converting their homes into
health clinics as these would cause greater nuisances compared to
private practices," he said.

Pondok Indah Entrepreneurs Association chairwoman Annisa Mirza
admitted after the meeting that many of her members had violated
the law by converting their homes into business premises.

"In fact, we would really like to have our businesses in
designated locations. However, we cannot simply uproot our
business operations immediately. We will move to the designated
locations step by step," she said, adding that many employees
would be affected should the businesses be forced to shut down
precipitously.

The administration plans to take action against businesses
being run from private residences in other parts of the city
after completing the task in the three pilot areas.

View JSON | Print