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Pasar Jaya eyes 63 markets to redevelop with mixed-use concept
With a backlog of demand for more than 1 million housing units and limited building sites, the need for more efficient, mixed-use land is encouraging, among other things, the construction of more apartments on top of markets
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span>With a backlog of demand for more than 1 million housing units and limited building sites, the need for more efficient, mixed-use land is encouraging, among other things, the construction of more apartments on top of markets.
Realizing the situation, city-owned market operator Pasar Jaya's head of public relations, Gatra Vaganza, said the company was eyeing 63 markets across the capital to be redeveloped with the mixed-use concept.
“We’re now in the process of changing the certificates of the 63 markets,” he told The Jakarta Post over the phone on Thursday.
“We need to change the certificates from right-to-use permits to become right-to-build [HGB] over the right-to-manage. This will provide a more firm legal basis for us to further utilize the land for commercial purposes,” Gatra explained.
With the new certificates, Gatra added, each apartment in a block can be sold with an HGB certificate with a right to use for up to 50 years — which would give the tenants more assured rights.
Among the markets they intend to redevelop are Cempaka Putih Market in Central Jakarta, Grogol Market in West Jakarta and Minggu Market in South Jakarta.
“The one in Minggu Market can even be developed as a TOD [transit-oriented development],” he said, noting that the market stands near a bus terminal, a Transjakarta bus shelter and a commuter rail station.
Asked when construction would kick off, Gatra said it might not be in the near future because the paperwork would require months to finish.
Gatra said the city, since the issuance of Jakarta Bylaw No. 3/2018 on Pasar Jaya, had become more lax in regards to Pasar Jaya’s business development.
He referred to a point in Article 5 of the bylaw that says Pasar Jaya is allowed to "carry out business in the property sector in integration with development of facilities in the market area".
However, he called on the city not to be too strict about the apartment allocation: whether it would be for low-cost apartments, subsidized housing or commercial apartments.
“We definitely will spare some for that, but we should also commercialize most of them so that private developers will be interested in partnering with us for the construction. That way, Pasar Jaya will not rely too much on a capital injection from the city,” he said.
As the company is working on the housing plan, Gatra said Pasar Jaya had already applied the mixed-use concept to redeveloping some of its markets. He mentioned Jembatan Merah and Senen markets in Central Jakarta, which had been integrated with hotels and office spaces.
Meanwhile, the Pasar Rumput low-cost apartments in Setiabudi, South Jakarta, the construction of which cost Rp 961.3 billion (US$70.45 million), had been finished by the Public Works and Housing Ministry in July last year. They are to be handed over to and managed by the city administration.
The complex has three towers, each consisting of 25 floors, 1,984 units and 1,314 business spaces. The cost of renting one apartment has yet to be decided, but it was reported earlier that it would be between Rp 800,000 and Rp 1.3 million per month.
Jakarta Housing Agency head Kelik Indaryanto last year said the city should give priority for renting units in Pasar Rumput to people who were evicted from their previous homes by the Ciliwung River's "normalization" project.
The executive director of the Jakarta Property Institute (JPI), Wendy Haryanto, said she has been pushing for the mixed-use concept in developing the city. She said there was much city-owned property that was still “underutilized”.
“It requires political will from the city administration,” she said in an exclusive interview with the Post on Wednesday.
Through the issuance of three gubernatorial decrees, the Jakarta administration appointed city-owned PT MRT Jakarta as the operator of TOD development in Jakarta, particularly along its line from Lebak Bulus in South Jakarta to the Hotel Indonesia traffic circle in Central Jakarta, as well as its future lines.
However, in order to extensively redevelop the capital with a TOD approach, Mulya Amri, another urban expert from the JPI, said the city might need more parties to be involved.
