Wholesale center to go ahead, despite row
Damar Harsanto, Jakarta
Governor Sutiyoso is scheduled to officiate the start of the construction of the eight-story Jakarta Wholesale Center at the site of the former Melati dam in Kebon Kacang, Central Jakarta, next week, despite concerns that the operation of the center will deal a blow to traders at nearby Tanah Abang textile market.
The plan has also been opposed by the City Development Research Foundation (LP3D), which argues that the construction of the center is against a city bylaw.
Bylaw No. 2/2002 on private markets in Jakarta, stipulates that a private market that occupies more than 4,000 square meters of land must be built at least 2.5 kilometers away from a traditional or community market. A private market must also be situated on one of the city's arteries.
The Jakarta Wholesale Center would be located less than one kilometer away from the Tanah Abang textile market on four-meter- wide Jl. Kebon Kacang, which is not one of the city's arteries.
"Traders at the new center will compete against those at Tanah Abang market, since they would both offer textiles and garments," said LP3D chairman Rico Sinaga.
The site is currently being used as a temporary parking lot for traders and buyers at Tanah Abang market, following the five- day fire that destroyed 2,420 kiosks at the market's Block A, C and E on Feb. 19, 2003.
Previously, market operator PD Pasar Jaya planned to use the site as an alternative space for vendors during the demolition of Tanah Abang market, the poor condition of which is endangering its occupants.
The Jakarta Construction Supervitory and Regulatory Agency (PPB) has recommended the demolition of blocks B, C, D and E of the market. Its recommendation is based on a study carried out by the Bandung Institute of Technology's school of civil engineering, which found that the poor quality of the concrete used in the blocks could not bear its existing load.
The Melati dam land was owned by the now-defunct Indonesian Bank Restructuring Agency (IBRA), which seized the land from Bank Dagang Negara Indonesia (BDNI). The land was made available for use by the city administration after the fire, but later IBRA sold it to PT Jakarta Realty in a bid to increase its value.
PT Jakarta Realty is a joint consortium in charge of the construction of the new wholesale center. It comprises city-owned developer PT Jakarta Propertindo and private developer PT Agung Podomoro.
PT Jakarta Realty vice president director Rusdi Yusuf said as quoted by Antara that the center would occupy 14.07 hectares of land and would have the capacity to accommodate around 10,000 shops, as well as a hotel for traders and offices.
The center will also provide a special space for small and medium enterprises (SMEs). The space will have an exhibition center, business center and information center for SMEs.
Rusdi claimed that the center, adopting a one-stop shopping concept, would be the second largest wholesale market for garment products and textiles in the country, after Tanah Abang.
He added the center would start operations in November.
To date, the Tanah Abang market is frequented by more than two million people daily, including traders from Malaysia, Singapore, the Philippines and African countries.
Jakarta Wholesale Center
Total area: 14.07 hectares
Trade Center: 282,000 square meters (eight stories)
Hotel and Convention Center: 28,500 square meters (300 rooms, 12 stories)
Offices: 38,000 square meters, 22 stories
Parking area: 196,500 square meters (for 6,000 cars)
SMEs and mosque: 16,000 square meters (four stories plus lower basement)