Indonesian Political, Business & Finance News

Traders urge market management change

| Source: JP

Traders urge market management change

JAKARTA (JP): At least 400 traders of Kenari electronics
market in Central Jakarta urged the government on Wednesday to
allow them to control the market's management for the sake of
efficiency.

Acting on behalf of the traders, lawyer Yuli Swasono of the
Jakarta Legal Aid Institute, said that private firm PT Binacitra
Tataswasti -- assigned by the government to manage the market
since last October -- frequently delivered controversial
decisions in favor of the firm itself.

Management cut electricity at the four-story market as of Feb.
18 because traders refused to pay a monthly service charge of Rp
24,600 (US$2.7) per square meter.

"Traders who are members of the market's cooperative, will
soon visit the Ministry of Cooperatives and Small Enterprises for
support," Yuli said.

"They will also stage a demonstration at the Ministry of Home
Affairs for appointing the private firm to manage the market."

The market's cooperative chairman, Afkar Wahid, said the
traders refused to pay the monthly charge because it exceeded the
Rp 17,000 per square meter ceiling, established under government
regulation.

"As the firm's indiscriminate act sharply reduced our incomes,
we will request the government allow the cooperatives to manage
the market."

He said if the request was rejected, traders would pressure
for the return of city-owned market operator PD Pasar Jaya.

Agreement

Meanwhile, Lawyer Danny Darmawan, representing PT Binacitra,
said the traders' demand was groundless because the firm was
appointed to operate the market for 20 years under a build,
operate and transfer agreement.

"We have invested billions of rupiah to rebuild the market."

Soedrajat Soleman, one of the firm's directors, said the
electricity cut originated from state electricity company PT PLN
because his firm was unable to pay the outstanding electricity
bill of Rp 15 million.

The firm could not afford to pay the bill once the traders
refused the monthly charge of Rp 24,600 per square meter.

"So far, we have paid the electricity for traders. We can
afford it no longer," he said.

Many traders at the market -- rebuilt after fire destroyed it
on July 12, 1996 -- were forced to use their own electricity
generators.

The market's basement parking lot was unused due to lack of
electricity. (jun)

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