Tanah Abang Market rebuilding bids to open

Bambang Nurbianto, The Jakarta Post, Jakarta

Reconstruction of the Tanah Abang Market in Central Jakarta, most of which was destroyed by a large fire on Feb. 19, will kick off early next year and is expected to cost some Rp 400 billion (US$47.05 million), says a city official.

Prabowo Soenirman, president director of city-owned market operator PD Pasar Jaya, said reconstruction work would take around 16 months to complete and promised to hold an open bidding for the project.

"We are now in the process of completing all permits needed for the market reconstruction," Prabowo told The Jakarta Post on Wednesday.

He added that PD Pasar Jaya would finance the reconstruction work, using bank loans if necessary, so as not to further burden the city's coffers.

Tanah Abang Market consists of six blocks with around 7,600 kiosks. The fire razed a total of 2,420 kiosks, mostly in Block A where some 1,741 kiosks were destroyed, another 505 kiosks at Block E, 170 kiosks at Block C and four kiosks at Block D.

According to Prabowo, the Rp 400 billion would be allocated for reconstruction of the kiosks at Blocks A and E. He did not say when reconstruction for the kiosks at Blocks C and D would begin.

Prabowo, whose company controls 151 traditional markets across the city, said that he would soon begin the tender process when all the necessary permits from other city agencies had been issued by the relevant agencies.

He also promised to hold a fair tender for those interested in winning the contract to rebuild the market.

Prabowo stressed that all those whose kiosks were burned would be given priority to lease new kiosks at a lower price compared to new applicants.

"We will give a special price to the old tenants," said Prabowo, while refusing to elaborate.

Meanwhile, Tanah Abang Market director Sugiyono said that the daily turnover of the Tanah Abang Market had declined from Rp 12 billion before the fire to only Rp 10 billion after the incident.

Besides a lower price, Sugiyono said previous tenants would also be provided with loans of between one year and five years.

The 7,594 kiosks at Tanah Abang Market are leased for long terms by some 4,700 traders. The market stands on a 39,300-square-meter plot of land with a total floor area of about 82,000 square meters.

Pending the reconstruction of the kiosks, the traders have been operating from temporary kiosks on the street in front of the market.

The city administration renovated the market in 1976. Then, it had 4,351 shops with a total floor area of 11,154 square meters.

Since most of the traders' leases expire next year, they are worried about renewing the leases and paying rent for another 20 years in the renovated buildings, where rent could reach as high as Rp 170 million per square meter.

Some traders whose leases are still good have sublet their kiosks to raise capital.

The new kiosks will measure one meter by two meters, with one meter between each row of kiosks. However, in places where there are building foundations, the kiosks will be twice as wide.