With many kiosk rentals at Pasar Santa in South Jakarta to expire in April, vendors and PD Pasar Jaya are looking for ways to keep rent affordable so the market can continue thriving with its hip, youthful stores as well as more traditional ones downstairs
ith many kiosk rentals at Pasar Santa in South Jakarta to expire in April, vendors and PD Pasar Jaya are looking for ways to keep rent affordable so the market can continue thriving with its hip, youthful stores as well as more traditional ones downstairs.
Dian Estey, Pasar Santa vendor representative, said she agreed that the current rent of Rp 3.5 million (US$268) per year for a kiosk was too low, but emphasized that introducing exorbitant rent would drive a large number of vendors away.
There have been rumors that after seeing the popularity of the market grow, especially the top floor where the young entrepreneurs are located, kiosk owners started quoting a much higher rent of up to Rp 25 million a year.
Most of the young entrepreneurs open their shops during weekends, while the old vendors have seen slow business for years because many households in the area rely on modern markets for groceries.
'We hope the market management can give us some kind of protection from unreasonable fees, or the vendors on all three floors will be unable to stay here,' Dian told the meeting on Pasar Santa sustainability, which took place in the market's basement recently.
Established in 1971, Pasar Santa is transforming into a hip market, where customers can find vinyl record stores or modern coffee shops on the top floor ' known as the first floor ' which was previously deserted.
On the two floors below the hip market ' basement and ground ' older tenants sell groceries, produce, toys and clothing.
The quiet, empty top floor saw a revival after young entrepreneurs started to open businesses, attracted by inexpensive rents of Rp 3 million to Rp 3.5 million per year in August 2014.
The market is located in an affluent area of Jl. Cikajang, behind Jl. Wolter Monginsidi.
Marco Kusumawijaya of the Rujak Center for Urban Studies said Pasar Santa's condition was an example of gentrification that had also happened in a number of countries.
'Gentrification is a good sign of development, however it can result in exclusivity and may kill the market in 10 years or less if it is not stopped,' Marco said during the discussion.
According to him, the administration had to find a solution to develop the market, but maintain rent levels so one vendor's fortune would not drive others away.
Marco said further that he saw a spirit of solidarity in the market instead of it being merely a business area, which should be appreciated.
City owned market operator Pasar Jaya president director Djangga Lubis said he would facilitate a meeting between kiosk owners and vendors so they would reach a settlement on rent.
Djangga said he would hire a consultant to appraise kiosk value and come up with a 'reasonable' rent fee for them.
The fee recommendation, he said, would be made known to every vendor in the market.
However, he said PD Pasar Jaya had no authority to impose any punishment if kiosk owners charged high rent.
'The developers of the market own hundreds of kiosks and I believe they will follow our recommendation, however, the rest are owned by individuals and the authority to set the fee is theirs,' Djangga said.
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