Management of Market Areas

With a view to city planning and increasing consumption, the Government of Jakarta has issued Regional Regulation No. 3 of 2009 on the Management of Market Areas. This Regulation repeals and replaces Regional Regulation No. 6 of 1992. Generally, the Regulation sets out provisions relating to authorities, market classifications, use, revenue sources, obligations and prohibitions, supervision and control, and sanctions, among others.

The authority to manage market areas is delegated to Perusahaan Daerah Pasar Jaya (PD Pasar Jaya). The management activities can be conducted with third parties where deemed to be necessary. The authorities envisaged in the Regulation include, among others:

Markets are to be classified into four basic types, namely: retail, grocer, primary markets, and special markets. These markets are then to be further classified with respect to their location, potential, and hours of operation. Each of these additional features is enumerated in the Regulation.

The revenue generated for the purposes of management of markets areas is to come from a number of sources. Primarily the revenue is to be generated from fees that are to be paid by market users.

The obligations, in essence, require tenants of the market to be good in their conduct. For example, tenants must obey all security and order provisions, maintain cleanliness, and comply with agreed operating hours. On the prohibition side, individuals or corporations cannot own more than five locations within a single market, change the physical layout of their locations, live or sleep in their market stalls outside of operating hours, and carry on immoral acts, among other prohibitions.

The sanctions for breach of the provisions include:

The Regulation also provides for administrative and criminal sanctions.

The Regulation was issued on 28 January 2009 and was enacted on 30 January 2009 and has been in force since the date of enactment.