Responding to the controversy over minimarkets in the city operating without licenses, the city administration is expected to amend a 2002 bylaw on markets.
Jakarta Regional Secretary Fadjar Panjaitan said one of the provisions in the draft amendment would keep minimarkets and convenience stores further away from traditional markets.
Fadjar said that all municipalities are currently collecting data on minimarkets in the city operating without the appropriate licenses. The survey is scheduled to be concluded on Feb. 27.
“Data from the initiative would then be submitted to Governor Fauzi Bowo,” he said.
Fadjar said that minimarkets and convenience stores operating without licences could be closed according to bylaw No. 2/2002 on markets.
The city could involve the Indonesian Business Supervisory Commission (KPPU) in the process, he added.
The 2002 bylaw stipulates the maximum size for a minimarket is 4,000 square meters. Minimarkets sized between 100 and 200 square meters should be at least 500 meters away from any traditional market. Minimarkets would only be allowed to open for business from between 9 a.m. and 10 p.m.
Minimarkets sized over 200 square meters need to secure permits from their respective municipality offices, whereas stores up to 2,000 square meters would need a permit from a deputy governor. Stores larger than 2,000 square meters would need a permit from a governor.
Among documents needed for opening a minimarket are letters from local sub-district and district heads and permits from the Public Order Office, Cooperatives and Small and Medium Enterprises Trade Office and the City Building Supervision Agency.
The chairman of the non-government organization Jakarta Residents Forum (Fakta) Azas Tigor Nainggolan said that his organization found indications that some minimarkets in the city had forged licenses for operation.
“The city administration has stopped issuing licenses for minimarkets through a gubernatorial instruction in 2006,” Azas said.
He suspected that the document could only be obtained from corrupt practices.
“Many minimarkets are now operating with forged licenses. This is possible because of corruption, where people could ‘buy’ licenses from city officials,” he said.
Azas said that his organization is currently providing advice for residents of Karet Belakang in South Jakarta and Palmeriam in East Jakarta who are seeking to close down two minimarkets they believe are operating illegally.
He recommended the city administration set up a task force under the regional secretary to monitor minimarket business in the city.
The taskforce would be able to issue recommendations on which minimarkets should be allowed to operate.
Most of the minimarkets in the capital are run by two retail giants, Indomaret and Alfamart.
The two companies apply a franchise system that allows their company to expand through licenses to individuals.
The policy has led to the mushrooming of minimarkets that are now on almost every corner in the city because of the ease with which a franchisee could set up shop
Mengenai Saya
- Irwan Khalis
- Jakarta, Indonesia
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