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Shop ‘Till Your Shop Gets Dropped

Most Commercial Traders at Bali’s Ngurah Rai Airport Financially Unable to Compete for Shop Space in Renovated Airport Facility

(1/27/2013) Efforts by a group calling itself the Federation of Airport Traders (P2B) and comprised of the current shopkeepers and other businesses located at Bali’s Ngurah Rai International Airport are becoming increasingly worried that the tender process now underway for letting commercial space at Bali's Airport may see them left out in the cold.

Dissatisfied with explanations given by the Angkasa Pura I - the government-owned airport authority, a delegation from P2B recently visited the National House of Representatives (DPR-RI) in Jakarta seeking to preserve their airport-based enterprises. Meetings with Commission VI of the DPR-RI, failed, however, to obtain the desired guarantee that their businesses would be guaranteed a continues existence in the renovated airport.

Angkasa Pura I’s managers are remaining steadfast in the position that the tender process to determine who can do business at the airport must proceed according to plan.

Unsuccessful in their lobbying efforts in the Nation's capital, the P2B members disapointedly returned to Bali on Tuesday, January 22, 2013.

As reported by Bisnis Bali, the directors of PT Angkasa Pura say that the tender process will remain open to all participants, including those presently doing business at the airport.

The commercials qualifications of the tender, however, may be out of the financial reach of many small traders working from the airport. Those tendering for commercial space at the airport must, according to the qualifying terms of the tender, demonstrate a yearly turnover of US$3 million and be prepared to pay a tender registration fee of US$3,000.

Traders who fail to achieve a US$3 million annual turnover may forfeit the tender registration fee.

Those taking commercial space at the airport will be required to pay an annual rental of US$670 per square meter per year or roughly US$56 per meter per month.

PT Angkasa Pura has promised a formal written response to the demands of P2B.

The 106-member P2B has publicly expressed fears that they will be unable to compete with large businesses vying for commercial space at the airport.

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