Surabaya becomes a progressive metropolis

Surabaya becomes a progressive metropolis

Surabaya has always been known as a trading city. Indian, Chinese
and Arab merchants brought their goods to the city by the Kalimas
River. Then some of these traders decided to form their own
communities and settled in areas close to the river.

They lived in harmony with the indigenous residents and many
married locals. This acculturation led to the establishment of
the Arabic settlement area in Ampel and in Pecinan (Chinatown).

Today, Surabaya has developed into an industrial and trading
hub. In 2003, the city's average economic growth was 4.8 percent,
and this year that figure is expected to rise to 5.5 percent.
Projected figures for 2005, 2006 and 2007 are 6.5 percent, 7.6
percent and 8.2 percent, respectively.

The period between 2003 and 2004 were witness to the bright
prospects for trading in the city, with shopping centers and
retail shops mushrooming.

Some of the new shopping centers are Maspion Square, Pakuwon
Trade Center, Supermal Pakuwon Indah, Sungkono Trade Center,
Darmo Trade Center (DTC) and Carrrefour Hypermarket in Golden
City. Some of the older shopping centers include Tunjungan Plaza,
Jembatan Merah Plaza and Surabaya Plaza.

New office buildings were also put up in 2003 and 2004, such
as Graha Wonokoyo and Menara Standard Chartered. Older office
compounds include Plaza Bumi Mandiri, Plaza BRI and Wisma
Dharmala Surabaya.

Ray White property consultant Edy Suwanto said the large
number of malls and shopping centers in Surabaya indicated that
the prospects for the property business in Surabaya were bright.

"Highway facilities and the construction of the Suramadu
(bridge connecting Surabaya and Madura) greatly support the
retail business in Surabaya," he said.

In his opinion, the presence of a large number of shopping
centers also indicates the stronger purchasing power of the
community.

Eighty percent of the some 1,000 units in the six-floor DTC,
which occupies 45,000 square meters of land and will be opened
for operation on Oct. 31, 2004, have been sold. Each unit costs
between Rp 80 million and Rp 900 million.

"This shows that the market for trade centers is still bright
in Surabaya. Please note that the buyers have come from as far
away as Ujung Pandang and places in Kalimantan," he said.

Unfortunately, the intensified construction of shopping
centers and industrial buildings has led to the demolition of
many cultural sites and increased pollution in the city.

In 1998, the number of motorized vehicles in the city stood at
923,633 and in 2000/2001 that figure was down to 909,131.
However, in 2002/2003, the figure rose by some 50 percent from
the previous year.

This increase in the number of motorized vehicles has led to
an imbalance between the condition of the roads and the number of
vehicles on these roads.

Data compiled by the Surabaya traffic and highway service
shows that every day 11,370 motorized vehicles pass along Jl. A.
Yani, the city's main street.

This means about 3,000 motorized vehicles each hour or 50
every minute pass along the street. However, the street was
designed to accommodate no more than 10,164 motorized vehicles a
day. Similarly, Jl. Wonokromo, which also can accommodate 10,164
motorized vehicles a day, sees 11,126 motorized vehicles pass
along it every day.

As a result, pollution has become a major problem for
Surabaya. A report on the results of air pollution measurements
in the city found that the city's air can be considered good only
for 27 to 51 days of the year.

This means that most of the time (83 percent of the year),
Surabaya residents breathe polluted air. Most (some 70 percent)
of this pollution comes from motorized vehicles. Only 30 percent
of the pollution is attributed to industrial and household
activities.

Despite the pollution, Surabaya residents believe the city is
a good place to live, earn a living and invest. A survey of
consumer expectations conducted by Bank Indonesia backs up this
statement.

Between March 2003 and March 2004, the consumer confidence
index was at 91 points, the consumer expectations index stood at
95 points and the economic condition index had passed 87 points.

-- Indra Harsaputra