Fairground case causes city to lose $200m<\/p>\n
JAKARTA (JP): City Council Commission B for Economic Affairs
\nrevealed that the city administration had suffered a total loss
\nof US$200 million during its almost 10 years of cooperation with
\nprivate companies in managing the annual Jakarta Fair.<\/p>\n
Councillor Ugiek Soegihardjo said the administration, through
\nits Jakarta Fair operator Pekan Raya Jakarta (PRJ) foundation,
\nfounded in 1969, had suffered losses since 1992.<\/p>\n
\"We will summon officials believed to be involved in causing
\nthe losses, including former governor Wiyogo Admodarminto and
\nPRJ's former head Soekarjo,\" Ugiek of the Indonesian Democratic
\nParty of Struggle told reporters here on Monday.<\/p>\n
He said PRJ had been profitable from 1969 until 1992, when the
\nsite of the fair was moved to the Ancol area, North Jakarta, from
\nthe National Monument (Monas) park in Central Jakarta.<\/p>\n
During its two-year (1992-93) cooperation with city-owned
\ndeveloper PT Pembangunan Jaya Ancol to manage the fair in Ancol,
\nPRJ, which has 46-hectares of land in the Ancol area, incurred an
\noperating loss of Rp 271 billion ($28,526,315).<\/p>\n
He said part of the loss allegedly resulted from the price
\nmanipulation of PRJ's land in Ancol.<\/p>\n
PT Pembangunan Jaya Ancol bought the land for Rp 13 billion
\nand sold it to buyers for Rp 800,000 per square meter or Rp 368
\nbillion, Ugiek said.<\/p>\n
\"Based upon the assumption that 25 percent of the land was
\nused for the site of the fair, the developer secured Rp 271
\nbillion in profit,\" he said.<\/p>\n
Considering that the Ancol area was no longer feasible for the
\nfair, PRJ then moved it to the defunct Kemayoran airport.<\/p>\n
He said that PRJ has since then cooperated with PT Jakarta
\nInternational Trade Fair (JITF) to manage the annual fair.<\/p>\n
JITF is 42.5 percent owned by a Japanese consortium, 52.5
\npercent owned by PT Jaya Nusa Pradana and 5 percent is owned by
\nstate-owned Kemayoran Management Body.<\/p>\n
PT Jaya Nusa Pradana is 75 percent owned by PT Griya Nusa
\nPratama and 25 percent owned by city-owned Pekan Raya Jakarta
\nfoundation.<\/p>\n
Ugiek said the council found that PRJ had paid capital of Rp
\n33 billion by providing 44 hectares of land, while PT Griya Nusa
\nPratama, owned by businessman Edward S. Soeryadjaya, contributed
\nnothing.<\/p>\n
He said PRJ even owed Rp 33 billion to Bank Summa, also owned
\nby Edward, for buying the land from the state secretariat.<\/p>\n
\"PT Griya should pay a total of Rp 106 billion for its 75
\npercent shares in PT Jaya Nusa Pradana,\" he said.<\/p>\n
He said the Japanese consortium also did not contribute any
\ncapital. A total sum of US$140 million it provided to the JITF
\nwas regarded as a loan.<\/p>\n
Chairman of commission B Syarief Zulkarnaen
\nSyarief viewed there were irregularities when former governor
\nWiyogo approved the rescheduling of the loan in 1994.<\/p>\n
\"Wiyogo should explain it. We haven't yet come to the
\nconclusion that there is a corruption case here,\" Syarief said.<\/p>\n
During a hearing with the commission recently, Edward who is
\nalso JITF's president, revealed that the company planned to sell
\n10 hectares of land in Kemayoran to cover its debt, which
\namounted to Rp 40 billion.<\/p>\n
The councillors voiced concerns of \"insider trading\" behind
\nthe plan as Edward would sell the land to his own company PT
\nGriya, which would reportedly develop a condominium in the area.<\/p>\n
Edward said that the plan to sell the land has been made
\naccording to the prevailing procedure, claiming that the land
\nbelongs to JITF. (jun)<\/p>",
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