Tanah Abang developer appointed
Tanah Abang developer appointed
Bambang Nurbianto, The Jakarta Post, Jakarta
City traditional market operator PD Pasar Jaya has directly
appointed developer PT Priamanaya Djan International (PDI) to
carry out the first phase of the complete renovation of Tanah
Abang textile market, Central Jakarta, estimated at Rp 600
billion (US$70.59 million).
PD Pasar Jaya president director Prabowo Soenirman said on
Wednesday after meeting with City Council Commission B on
economic affairs that PDI was one of four companies that had
submitted proposals to transform Tanah Abang's Block A into a
luxury shopping mall. The block was destroyed by fire on Feb. 19.
He did not give details on the other companies, nor did he
provide reasons for PDI's appointment. He only stressed that it
was the best among the four and did not mention who was the main
force behind PDI.
When asked as to the developer's performance, Prabowo only
said, "I cannot answer that question."
Tanah Abang, the biggest textile market in Southeast Asia, was
razed by a fire in February. It took firefighters five days to
completely extinguish the massive fire at the four-story market.
Of the market's 7,594 shops, 2,420 were gutted.
PD Pasar Jaya had originally designed the renovated market to
be seven-floors high with a seven-level basement. But advice from
the Jakarta Fire Department, based upon its recent experience,
prompted the market operator to revise the design to 16 floors
above ground and three below.
A March article in Tempo magazine, which insinuated that
businessman Tomy Winata was behind the fire in order to win the
market renovation project, has ensued in an ongoing legal battle
between the weekly and the businessman.
Prabowo said he held an open tender for the developers, but
had cut the bidding in mid-process and directly appointed PT PDI.
"I exercised my legal rights to appoint the winning bidder,"
he argued, referring to Paragraph 5, Article 11, of Presidential
Decree No. 18/2000 on procurements for government agencies.
Another article in the decree stipulates that direct
appointments can be exercised in the case of a maximum Rp 50
billion project.
Prabowo claimed that the redesigned market building would be
the most luxurious commercial complex in the capital.
The ground-breaking ceremony is to take place on the evening
of Dec. 15, featuring fireworks.
The tenancy rate at the new mall will be more expensive than
plush Plaza Senayan in Central Jakarta or Mal Taman Anggrek in
West Jakarta.
A report from Procon property consultant says that average
monthly rent at primary shopping malls like Plaza Senayan and Mal
Taman Anggrek is Rp 675,042 per square meter.
Tanah Abang market, which consists of six blocks and 7,600
kiosks, is to be replaced by a mega-complex of shopping malls in
the future. The malls will face Tanah Abang railway station on
Jl. Jati Baru, which is to become a monorail station.
Prabowo promised that the 2,000 traders of Block A will be
given a special 20-year rate of Rp 20 million per square meter,
as well as special location among the 8,000 shops of the mall.
"It is part of our commitment to the old traders," he said.