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Jakarta Post

Retailers seek compensation from Jakarta administration for flood losses, damages

  • News Desk

    The Jakarta Post

Jakarta   /   Sun, January 12, 2020   /   06:58 pm
Retailers seek compensation from Jakarta administration for flood losses, damages Sellers move a mannequin and clothing rack out of the Cipinang Indah shopping center in East Jakarta during massive flooding that hit across the city on Jan. 1. (Antara/Galih Pradipta)

The widespread flooding that started hitting parts of Jakarta on New Year’s Day is having lasting repercussions almost two weeks later, as a number of shopping centers across the capital are still unable to open for business because of ongoing repairs.

Consequently, several business owners have called on the Jakarta administration to compensate them for the losses they have suffered from the disaster.

“We have submitted a report to Jakarta Governor Pak Anies [Baswedan],” said Indonesian Shopping Centers Tenants Association chairman Budihardjo Iduansjah on Sunday as quoted by kompas.com.

“I hope he’ll be willing to listen to our complaints and decide on doing something that will alleviate our burden.”

He said business owners expected the administration to provide compensation in the form of tax reductions, instead of direct financial coverage of their losses.

“There are a number of regulations that have created a burden for us in the field, such as an indoors ad tax,” Budihardjo said, referring to the administration’s tax on advertisements displayed inside shopping centers.

The administration’s current ad tax is 25 percent of the ad rental fee.

Two major shopping centers, Taman Anggrek in West Jakarta and Cipinang Indah in East Jakarta, were still closed because of ongoing repairs as of Sunday, according to Budihardjo.

Retailers in Greater Jakarta are estimated to have lost more than Rp 1 trillion (US$71.91 million) in total as shops in the area had to cease operations on account of severe flooding since New Year’s Eve, according to Indonesian Retailers Association official Rod Mandey.

In Jakarta alone, he said, about 300 shops were closed, resulting in total estimated losses of Rp 960 million. (rfa)