Jakarta, CNBC Indonesia – Tanah Abang Market is one of the busiest markets in Indonesia with a variety of activities, from textiles to food. In its heyday before the pandemic, it was very difficult to find a kiosk in Indonesia’s largest textile center. However, now that many kiosks are completely empty due to the effects of the Covid-19 pandemic, the rental prices for kiosks have now been destroyed.
“Block G has a lot of markets under basic necessities, vegetables from the past have not been so alive, while Block F is now rented for Rp 20 to Rp 30 million per year. Whereas normally it used to be Rp 100 million, Rp 90 million or at least Rp 80 million, So at least half of it could fall,” said Tanah Abang Market Trader Yasril Umar to CNBC Indonesia, Tuesday (27/7/21).
The decrease in rental prices occurred due to a sharp decline in demand for kiosks. During 1.5 years of being hit by a pandemic and various restrictions, many traders went bankrupt so they could not continue renting kiosks.
Yasril estimates that over the last few years, more than half of the traders in Tanah Abang are no longer operating. The condition was exacerbated by the existence of an emergency PPKM for more than three weeks yesterday, where traders were not allowed to sell. As a result, stalls in strategic locations are now starting to become empty and prices are falling.
“Blocks A and B used to touch Rp. 200 million to Rp. 250 million per block or an area of 2m2 x 2m2 for a one-year rental, now maybe under Rp. 100, not necessarily anyone wants it. Moreover, Tanah Abang Metro Wholesale Center can reach Rp. 500 million first,” said the former chairman of the Tanah Abang Market Traders Cooperative.
One of the stall owners at Tanah Abang Market, who did not want to be named, explained that the current rental price for his kiosk was very cheap. When comparing with normal time, the decrease is more than half.
“I rented Los C for Rp. 70 million, in block B, Rp. 65 million, that’s net. And you have to pay it all at once, because the experience of paying in installments is hard to ask for forgiveness, the current account is empty. There are installments, but the price is increased by Rp. 5 million or how much , but I nand just and at the same time at the beginning,” said the stall owner.
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