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Jakarta Post

Old town, new manager

While a clear legal basis is needed for the joint venture tasked with developing Jakarta's Kota Tua, taking the area's management off the hands of the bureaucracy is a good move.

Editorial board (The Jakarta Post)
Jakarta
Sat, May 8, 2021

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Old town, new manager

J

akarta may have given up hopes that UNESCO will someday name its Kota Tua (which translates to Old Town) a world heritage site, but the city is not losing steam in its effort to revitalize the historic area and boost tourism.

Last week city-owned enterprises PT Jakarta Tourisindo (JXB) and PT Moda Integrasi Transportasi Jabodetabek (MITJ) signed a heads of agreement with state-owned Indonesia Tourism Development Corporation (ITDC) to found a consortium that will take over the management of Kota Tua from the city government.

The move could be a game changer. For years, if not decades, Jakarta has spent a lot of energy and funds to develop the area known for its rich in historical heritage and turn it into a top tourist destination in the country, if not the world.

In their preliminary agreement, the three companies express a commitment to the Kota Tua revitalization as “an integrated, modern tourism site that retains its historical value and strengthens Jakarta’s status as one of the most historical tourist destinations in Indonesia.”

Many will agree that the three enterprises, given their credentials, are the right parties in the right place at the right time. When the joint venture begins operations, hotel company JXB will arrange events, transportation firm MITJ will integrate public transportation and ITDC, which has made a name for itself by developing Nusa Dua in Bali and Mandalika Bay in neighboring Lombok, will build pedestrian-friendly facilities.

While a clear regulation is needed as a legal basis for the operation of the joint venture, the management of Kota Tua should be taken off the hands of the bureaucracy. Obviously, Kota Tua needs a new way of business to compete with other tourist destinations. A bureaucratic mindset will only kill creativity, innovation and other features needed the most in tourism, especially during the pandemic.

The regulation should also give the joint venture the freedom to explore all opportunities to promote Kota Tua as a number one tourism site. That may include partnerships with the private sector and foreign entities that have experience and knowledge Kota Tua can learn from. Jakarta Governor Anies Baswedan has expressed his support for the consortium’s partnership with the private sector.

The consortium is set to be awarded the right to manage a 240-hectare area that spans from Kota Tua in West Jakarta to Sunda Kelapa Port in North Jakarta. The problem facing the joint venture is the fact that only a few colonial-era buildings remain, such as the most famous Fatahillah Square. Many private owners of old buildings there have opted to demolish their properties or are difficult to contact.

It would be unfair for the government to ask the private owners of the old buildings to preserve their assets so as to maintain the authenticity and originality of Kota Tua. Unless the government covers the huge maintenance costs, more old buildings in Kota Tua will vanish.

The new effort to restore Kota Tua should therefore include a review of the old revitalization plan that will ensure that the area’s development benefits all.

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