Indonesian Political, Business & Finance News

Tanah Abang market to be demolished in January 2005

| Source: JP

Tanah Abang market to be demolished in January 2005

Bambang Nurbianto, The Jakarta Post, Jakarta

The Jakarta administration is set to demolish four blocks of the
Tanah Abang market in Central Jakarta in January, in preparation
for the rebuilding of the largest textile market in Southeast
Asia as a grand shopping mall.

Prabowo Soenirman, president director of city-owned market
operator PD Pasar Jaya, said that the traders would be
temporarily moved to two nearby markets during the construction
period.

"It is final. The demolition will begin in late January," he
told The Jakarta Post by phone on Friday.

The project itself has met strong opposition from 4,000
traders in the market who fear they will lose their place of
business.

The traders suspected that the demolition would essentially
cause their eviction from the market since they could not afford
the new kiosks, which have been offered for between Rp 20 million
(US$2,198) and Rp 200 million per square meter, depending on
their location. Kiosks on lower floors are usually more
expensive.

Earlier on Friday, about 200 traders staged a rally outside
the City Council, demanding that the councillors stop the
demolition plan.

The traders suspect that the market operator will raise the
rent in the new building, as it had changed its initial decision
to allow the traders to stay on in the old buildings as the
initial plan did not involve demolishing the buildings.

Part of the four blocks -- B, C, D and E -- were badly damaged
by fire in February 2002.

The traders' spokesman, Sofjan Mashud, said Prabowo had
confused the traders because although he had allowed them to seek
a second opinion on the demolition plan, he said later that
whatever the result was it would not affect the plan.

The plan was made based on a study carried out by the Bandung
Institute of Technology (ITB), which indicated that the four
blocks built in the 1970s were no longer sturdy enough to support
daily market activities and could collapse at any time.

Both Prabowo and the traders agreed to appoint the University
of Indonesia to conduct a study, the result of which was to be
used as input in the city administration's decision.

"If the city administration has chosen to ignore a second
opinion, why did PD Pasar Jaya agree to appoint UI to conduct the
research?" Sofyan added.

Chairman of City Council Commission D for development affairs
Sayogo Hendrosubroto promised the traders that the commission
would meet with Prabowo to seek a solution.

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