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Bali News

A Fair Trade?

Compromise Reached with Traders at Bali’s Airport to Guarantee Places of Business in Renovated Ngurah Rai Airport


Bali News: A Fair Trade?
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(2/16/2013)

After increasing pressure on a number of fronts, the managers of Bali’s Ngurah Rai International Airport, PT Angkasa Pura I (AP-I), has relented on strict qualifying requirements for traders currently operating from the airport and seeking commercial space in newly renovated air gateway for the Island.

As reported by the Bali Post, AP-I has acceded to demands of airport shopkeepers now working at the airport organized under the banner of The Federation of Airport Traders (P2B).

PAP-I has agreed to provide space to existing traders without the requirement to demonstrate a US$3 million annual turnover or pay a US$3,000 registration fee – both seen by P2B members as onerous and outside their financial capabilities.

The decision to make space for existing airport traders was achieved at a marathon meeting held on Thursday, February 14, 1013. After a 6-hour discussion involving the leaders of P2B, CEO of AP-I, members of Commission VI of the Indonesian House of Representatives (DPR-RI), a representative of the Badung House of Representatives (DPRD-Badung) and other regency officials.

While negotiations continued, the entrance to the Hotel Patra Jasa, located adjacent to the airport, remained closed and paralyzed as employees of the companies comprising the P2B staged a sit-in protest in support of their demands.

The four points agreed at the meeting were:

  1. Commission VI of the DPR-RI have asked AP-I to prepare a location for small and medium-sized traders, comprised of both existing tenants of the airport and others who have received a recommendation from the Badung Regional Administration and are prepared to enter into a commercial partnership with AP-I.
  2. AP-I agrees to prepare an area at the renovated airport for the traders addressed in Point 1 located in the Promenade area, level One of the arrival hall and in via counters located in both the domestic and international terminals.
  3. Commission Vi of the DPR-RI has called for a rental price to be agreed between AP-I and the traders contemplated in Point 1.
  4. AP-I is requested to pay attention to the needs of local traders in accordance with prevailing law.
Following the meeting the chairman of P2B, I Wayan Sukses, was overjoyed with the results of the meeting, saying: “That which we fought for has been answered. We will follow the advice and decisions of AP-I in order to remain commercially productive and create a conducive atmosphere at Bali’s air gateway.”

Tommy Sutomo, the CEO of API-I confirmed that 1,500 square meters of space will be prepared for small and medium-sized traders.

Separately, the regent of Badung, A.A. Gede Agung, saw the consensus achieved as the best solution for all parties. Agung added: “While not all parties will be pleased, nonetheless, an equitable solution for all concerned has been achieved.” He called on AP-I and P2B to ensure that the atmosphere at the airport remains conducive and welcoming to visitors.

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