Traders agree to rent increase

JAKARTA (JP): Traders at government-supported markets (locally known as pasar inpres) have finally agreed to the city administration's decision to upgrade the markets' status to self- supported markets under certain conditions, an official revealed on Friday.

"The traders finally understand the decision to upgrade the markets' status after a meeting with several city officials," director of city-owned market operator PD Pasar Jaya Syahril Tanjung told reporters at City Hall after the meeting.

"However, they did ask our guarantee to allow them to continue running their businesses at the markets," he added, while saying the resistance in the beginning was purely due to lack of communication.

Also present at the meeting were Assistant to City Secretary on Development Affairs Ongky Sukasah, head of the City Legal Office Nelly Sukmo and head of the City Economic Office Dameria Saragih.

The traders feared they would be thrown out of the markets following the new status.

In the meeting, the traders also demanded the company not raise the rent immediately.

"We can understand the traders financial difficulties to pay the sharp increase. We'll therefore impose it gradually," Thamrin said.

"The important thing is that they already agree with the upgrade" he added.

Under the new status, traders running their business at a 4.2 square meters kiosk will be required to a pay daily rent (for the business, littering, and security) of Rp 2,000 (about 25 US cents), or about three times higher than the old rate of Rp 700.

Thamrin also said the upgrade would eventually give larger benefits to the traders.

"The traders can use the kiosk's licenses on self-supported markets as collateral to apply for loans from banks, not permitted to those of renting kiosks in government-supported markets," he said.

"Their children can also inherit the kiosks or sell them to third parties," he added. (nvn)