Small businesses in residential areas

On Oct. 22, PT. Jaya Real Property Tbk notified small businesses in Bintaro's Sectors III and V (not the other sectors in Bintaro) that they had three days to get out. These notifications came in the form of hand-delivered letters (590/JRP/PP-HW/X/97). The reason given was that these small businesses were operating in residential areas.

This notification came without any prior warning whatsoever. The person who issued the letter refused to meet with a group representing the small businesses in Sectors III and V on the day that the letter was issued.

A brief meeting with subordinates did not produce any significant results or clear reasons for the arbitrary nature of the notifications. When asked why only small businesses in Bintaro Jaya Sectors III and V were being told to get out in three days, the Jaya subordinate replied that this was only the beginning and that the other sectors would be dealt with later.

A letter signed by 30 small businesses from Bintaro Jaya Sectors III and V did not elicit a response from PT. Jaya.

Jaya sent a second letter on Oct. 27 (.../JRP/PP-HW/X/1997), and a third on Oct. 29, to all small businesses in Bintaro Sectors III and V reminding them that their three days to get out had passed.

It is difficult to understand how forcing out small businesses in Bintaro Sectors III and V will help the property market in Bintaro. Houses on the main streets are not very suitable as homes because they are big and located close to traffic.

These houses were sold and are being sold at higher prices than those on quiet streets because they can be used for business purposes.

When one particular business (with which the author is familiar) opened two years ago in Bintaro Jaya (with all necessary government permits and licenses), they discusses their plans with PT Jaya's management office. Not only was PT Jaya supportive but it agreed to advertise this business in PT Jaya Real Property's Kicau Magazine (for which a fee was paid) and they put banners up for the business (again for a fee). Other businesses had the same reception.

Why has PT Jaya Real Property Tbk chosen this particular time to attempt to impose such impossible conditions on small businesses in Bintaro Sectors III and V? Why have they only focused on Sectors III and V? Why have they given only three days to get out when most housing rental contracts have been paid in advance for two years and mortgages even longer? Why have they not attempted to impose the same conditions on banks operating in residential areas? Where is their social conscience and concern for those that would become unemployed by such actions?

The older sectors (I and II) have even more businesses and the newer sectors (VI, VII, VIII, IX) have many businesses that are just starting up. This comes at a time when it is already clear that Indonesia is in for some economic difficulties and unemployment problems.

Why go after small businesses now? This tactic is not going to improve the prosperity or help the property market in Bintaro. If PT Jaya is really keen on maintaining residential zones in Bintaro, why have they done nothing until now? And what about the rest of Jakarta? The Blok M area comes to mind.

M.E. DYAH R.

Jakarta