T

housands of traders at two traditional markets in Malang, East Java, may have to find new places to do business after the city’s lawmakers recently approved a development agreement to turn them into a shopping mall and apartment complex.

The decision means that traders at the Dinoyo and Blimbing traditional markets would have to relocate to provide space for the new project. “Honestly, we’re strongly disappointed with the decision,” said Ahmad Khuzaini, spokesman representing Dinoyo market traders.

He criticized the Democratic Party as one of the parties which backed up the agreement after it earlier said it supported the traders and would say no to the agreement, which was jointly put forward by investors and the city administration.

Khuzaini said the traders would fight against the decision by all means necessary, including by filing a lawsuit.

The development of Dinoyo and Blimbing markets into a shopping mall, shopping complex and apartment project is projected to cost Rp 441.1 billion (US$49 million) in funds.

The 9,810-square-meter Dinoyo market, which currently hosts some 1,300 traders, will be turned into a five-story mall.

The 17,000-square-meter Blimbing market, which has some 2,500 traders, will be transformed into a shopping complex and a three-story apartment.

For the project, the city administration has to relocate around 4,000 plots in the two traditional markets belonging to the traders.

Initially, traders at the two markets were not against the development project.

But they began protesting after finding out later that they would be placed outside the planned complex, not inside.

The traders demanded to be placed on the first and second floors as well as on the front part of the complex, against the investors and city administration’s plan to place them behind the complex.

Previously, head of the city’s Market Affairs Agency, Hartono, said that his office had involved the traders in every meeting and dialogue with the lawmakers regarding the project.

He acknowledged it would be hard for the market development committee to meet all the traders’ demands.

The development project, which is scheduled to start this year, is expected to finish by December 2012.

The projects are agreed through a 30-year joint management in which the city administration will receive an annual compensation of Rp 787.4 million ($88,000) from Blimbing and Rp 723 million from Dinoyo.

The city administration has invited investor PT Citra Gading Asritama from Surabaya, East Java, for the Dinoyo project.

For the Blimbing project, it has named a consortium comprising of PT Karya Indah Sukses, PT Fortunindo and PT Raka Utama from Surabaya as investors.

So far the Dinoyo market has been contributing some Rp 900,000 daily to the municipal original income (PAD), while Blimbing contributes Rp 1.2 million daily.