DKI Pemprov Has Not Think About Compensation For Flood-Affected Malls

Jakarta City Hall Office (Diah Ayu Wardani / VOI)

JAKARTA - DKI Regional Secretary Saefullah admitted that he had not thought of giving tax compensation to shop tenants in shopping centers that were affected by the Jakarta floods earlier this year.

He said that the DKI Jakarta Provincial Government has not received a letter of complaint and request for tax relief from the Association of Indonesian Shopping Center Tenants (Hippindo) regarding the impact of the floods.

"I haven't thought about it yet. I haven't had a letter yet," said Saefullah at DKI City Hall, Jalan Medan Merdeka Selatan, Central Jakarta, Tuesday, January 13.

He did not want to think about the opportunity to provide compensation for the flood event that harmed shopping centers. He needs to hold discussions with a number of issues regarding the possibility of providing tax compensation.

"There is not only one government organizer. There is a regional head, there are also organizations besides the regional head such as BKPP, BPK. From them, we can ask for advice and so on," said Saefullah.

The floods that hit the Jabodetabek area at the beginning of the year affected entrepreneurs in retail shopping centers. The Indonesian Shopping Center Tenants Association (Hippindo) said that the losses from its members reached 50 percent of the turnover they had to get.

Hippindo Chairman Budihardjo Iduansjah said that Hippindo members consist of around 500 offline retail brands. The stores of Hippindo members are scattered in shopping centers / malls, shop houses, apartments, airports, stations, ports, rest areas, SPBH, offices and other commercial areas.

"Many members said turnover fell during the flood and they wanted to meet with the Governor of Jakarta to discuss the impact of flooding on our business," said Budihardjo, Monday, January 13.

He explained that due to the flood, several mall accesses were disrupted so that employees and customers could not enter it. “All the shops are quiet January 1–5. Maybe now it's starting to recover. But there are still malls that haven't opened yet, namely Cipinang Indah Mall, East Jakarta, and Taman Anggrek Mall, West Jakarta, "Budi explained.

However, continued Budiharjo, Hippindo did not ask for compensation for the decrease in their business turnover. But, at least the DKI Jakarta Provincial Government can help their loss burden by compensating for the reduction in billboards tax in shopping centers.

Hippindo asked DKI Pemprov to review several policies. The reason is, according to him, if it is still implemented, it will increase the cost burden and will have a negative impact on the sales of Hippindo members.

"For example, policies such as billboards tax in our stores. We ask for a review. That is a technical policy that may need to be revised, "Budi added.