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Traders to lose jobs at Ngurah Rai airport

Hundreds of Airport Traders Association (P2B) members staged a rally Thursday at the Bali Governor’s office demanding the Ngurah Rai International Airport management to provide them with commercial spaces and job opportunities in the newly renovated airport

Ni Komang Erviani (The Jakarta Post)
Denpasar
Sat, September 14, 2013

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Traders to lose jobs at Ngurah Rai airport

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undreds of Airport Traders Association (P2B) members staged a rally Thursday at the Bali Governor'€™s office demanding the Ngurah Rai International Airport management to provide them with commercial spaces and job opportunities in the newly renovated airport.

The protesters warned that the new rental policy implemented by the airport'€™s Commercial Strategic Business Unit (SBU) would shut down stores operated by P2B members and eliminated 2,400 jobs.

'€œThe new rental policy favors major corporations with big capital,'€ P2B chairman I Wayan Sukses said.

The association is made up of 121 small and medium enterprises (SMEs) that for years had operated souvenir shops, fashion outlets, restaurants, travel agencies, money changers, rental car desks, beauty salons and spas in and around the airport'€™s two passenger terminals.

Early this year, the SBU announced a new bidding scheme for commercial spaces inside the airport and notified the 121 SMEs that they would be required to vacate their existing premises before the official inauguration of the expansion project slated to be held late this month.

Eight money changer outlets, including one owned by P2B chairman Wayan, had been told to shut down their operations before Sept. 19. The order from the SBU spelt the end of those eight outlets, since their money changer licenses were only valid for doing business inside the airport.

 '€œWe are demanding a space in the airport so we will be able to continue running our business. Otherwise, our business will go bankrupt,'€ Wayan said.

He said that the SBU'€™s bidding requirements for selecting new lessees were very difficult, if not completely impossible, for SMEs to fulfill.

It was reported that bidding participants had to pay a US$3,000 registration fee and have an annual turnover of at least $3 million, or Rp 80 million ($7,100) per day. The SBU also set the rental price at $670 per square meter.

 '€œIt is very hard for our members to participate in the bidding process, let alone win a space,'€ Wayan said. '€œSome of our members tried to get a space but failed.'€

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