Sutiyoso against plan on fund collection
Sutiyoso against plan on fund collection
JAKARTA (JP): Governor Sutiyoso expressed concern on Thursday
over city-owned market management company PD Pasar Jaya's plan to
collect money for renovations from traders at traditional markets
that were burned and destroyed during the May riots.
"Those who dare (to burden the traders) will risk facing me
because I have repeatedly told my subordinates that my general
policy is to avoid anything that makes people suffer," he said.
Sutiyoso said that traders at traditional markets should be
helped to resume business so as to enable them to revive the
financial standing of common people.
"This is the policy which should be carried out by city
officials," he reiterated.
The governor made the remarks in response to complaints from
traders at damaged markets, most of whom have paid 20 year's
rent, that they would be subject to renovation charges of between
Rp 1.8 million and Rp 3.5 million per square meter.
Out of the 13 markets destroyed during the May riots, six
suffered the heaviest damage totaling losses of some Rp 56
billion.
The six are Palmerah and Cempaka Putih market in Central
Jakarta; Perniagaan and Glodok in West Jakarta; and Cipete and
Pasar Minggu in South Jakarta.
The city administration finished the renovation of the Cempaka
Putih market in Central Jakarta in August last year.
This month the administration is scheduled to start renovating
Palmerah market at an estimated cost of Rp 3.85 billion, Pasar
Minggu market at Rp 7.15 billion and Cipete market at Rp 6.7
billion.
The Ministry of Finance has allocated Rp 68 billion to the
city administration as a loan to renovate all the damaged
markets. The loan, which has an interest rate of 11.5 percent per
annum, should be returned in eight years and six months, head of
Pasar Jaya Syahrir Tanjung (not Sjahril as earlier reported) said
on Thursday.
He said his company would bear 25 percent of all the
renovation costs. "That's why we won't use all the ministry's
fund," he said.
Syahrir also confirmed the company's plan to collect
renovation charges, but said the amounts payable would be decided
later.
"It's not possible to exempt the traders from paying the
charge as we are obliged to return the ministry's fund and Pak
Sutiyoso should realize that.
"Concerning the amount of renovation charges, we will soon
renegotiate with traders. What we have offered them (charges of
between Rp 1.8 million to Rp 3.5 million) was based on a previous
calculation of renovation costs, which was higher than the most
recent calculation," he said.
Syahrir said the cost of renovation was previously estimated
at Rp 14.87 billion for Palmerah market, Rp 17.6 billion for
Pasar Minggu market and Rp 9.8 billion for Cipete market.
He also said traders could pay the renovation charges in
installments for up to seven years.
He said he could understand why the traders strongly opposed
the company's plan to collect money from them since they had
finished paying the 20-year leases on their kiosks. "But the
regulation (1992 Bylaw No. 6 on market management in Jakarta)
states that if markets are destroyed, traders forfeit their lease
agreements," he reminded. (ind)