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Tiara Supermarket in Ubung Threatened with Closure as Denpasar Administration Refuses to Extend Lease

Bali News: Bali, Indonesia, Tiara Grosir, PT Karyajati Megatama, Ketut Jaya, Tiara Grosir Ubung, Fransiskus Asisi Nanang, workers union, HGB, lease, PTUN, Administrative Court, Tiara Supermarket, IB Rai Mantra Wijaya
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As many as 750 employee of the Tiara Supermarket Ubung (Tiara Grosir) and PT Karyajati Megatama may soon find themselves without employment following the refusal by the Denpasar municipal government to extend the lease on the popular hypermarket.

As reported by, PT Karyajati Megatama has commenced a legal action with the Denpasar Administrative Courts naming the Vice-Mayor of Denpasar, IB Rai Mantra Wijaya, as a defendant.

At a preliminary hearing held on Wednesday, December 21, 2011, tens of representatives of the 750 affected workers from Tiara Grosir attended the court proceedings.

The Chairman of the employees’ union at Tiara Grosir, Fransiskus Asisi Nanang, told the press: “The presence of tens of representatives of the workers’ union at the PTUN (Administrative Court) is to show support for the proceedings aimed at persuading the municipal authorities to show some mercy and extend the lease to PT Karyajati Megatama. If the lease is not extended there will be around 750 employees who will be terminated from their employment because the company will no longer have a place to carry on its business.”

Fransiskus added that almost all the workers faced with the threat of unemployment have families whose lives depend on wages paid by Tiara Grosir Ubung. The union representative added that if the lease is not extended there will be some 2,000 people in the city of Denpasar and surrounding areas will loose their source of livelihoods.

“If an employee has a wife or a husband and one child, this equates to 2,000 people who will no longer eat. For this reason, we implore the municipal government of Denpasar and the company to consider the rights of the employee,” said Fansiskus.

The legal representative of PT Karyajati Megatama, Ketut Jaya, said the lease (HGB) ended on December 12, 2011. Representatives of PT Karyajati Megatama had long ago filed a request for an extension of the lease, which has been refused by the Denpasar administration. According to the attorney, efforts at mediation and negotiation with the government have come to naught.

Ketut Jaya concluded: “That is why PT Karyajati Megatama is suing the Vice-Mayor of Denpasar for refusing to extend the lease on the grounds that the refusal makes no senses and fails to consider the fate of the employees who depend on Tiara Grosir Ubung for an income. These hundreds of employees can not be moved to other branches of Tiara as vacancies do not exists at those branches.”

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