Foreign firms proposed for waterfront project<\/p>\n
JAKARTA (JP): Councilors have recommended that the city
\nadministration offer remaining work on the huge Jakarta
\nwaterfront project to foreign companies because embattled local
\nfirms do not have the means.<\/p>\n
Participation of foreign firms is vital to accomplish the
\nreclamation and regeneration of northern areas of North Jakarta,
\nthey argued yesterday.<\/p>\n
\"The opportunity for foreign investors to take part in the
\n(so-called) Pantura project is still wide open as there are great
\nspaces of land which have not been developed yet,\" Lukman F.
\nMokoginta of the Indonesian Democratic Party (PDI) said.<\/p>\n
City administration data lists 1,059 hectares of inundated
\nland still for reclamation and 12,772 hectares for regeneration.<\/p>\n
Councilors said there was little likelihood of local firms
\nparticipating in the megaproject due to the economic crisis.<\/p>\n
Most companies involved in the waterfront project have halted
\nactivities temporarily, Lukman said.<\/p>\n
Ali Wongso Sinaga of Golkar faction concurred and said the
\nproject urgently needed foreign investors, particularly those
\nwith strong financial and technological backgrounds.<\/p>\n
\"This project needs a lot of money. Being objective, only
\nreputable foreign firms have the capability to develop the area
\nduring this economic crisis.<\/p>\n
Local firms? Forget it,\" Ali said.<\/p>\n
Many local businesses, particularly in the property and
\nconstruction sectors, have gone bankrupt due to the drastic drop
\nin the rupiah's value against the U.S. greenback since last year.<\/p>\n
Many that remain in business are barely staying afloat.<\/p>\n
The Pantura project aims to create a future waterfront city by
\nreclaiming 2,700 hectares of inundated land and regenerating
\n13,709 hectares of land along the north coast.<\/p>\n
It spans the five districts of Penjaringan, Pademangan,
\nTanjung Priok, Koja and Cilincing.<\/p>\n
The Pantura Reclamation and Development Board, set up by the
\nadministration for the project, has so far signed seven
\nMemorandums of Understanding (MOUs) and three development deals
\nwith several private companies to do reclamation and regeneration
\nwork in the area.<\/p>\n
Companies contracted for reclamation projects include PT Kapuk
\nNaga Indah, a Salim Group subsidiary with a 674-hectare
\nconcession; PT Pembangunan Jaya Ancol, a joint venture between
\nthe city administration and property tycoon Ciputra (392
\nhectares); PT Manggala Krida Yudha, a company partly owned by
\nformer president Soeharto's youngest daughter Siti Hutami Endang
\nAdiningsih (375 hectares); and PT Jaladri Kartika Eka Paksi, a
\ncompany associated with the Armed Forces (200 hectares).<\/p>\n
According to Lukman, each company was required to pay an
\ninitial development fund to the board of about US$2.5 million for
\neach concession.<\/p>\n
\"They are also required to pay the development charge of $50
\nper square meter of land included in the concession,\" he added.<\/p>\n
The board, Lukman said, now planned to cut the development
\ncharge by half in a bid to lure investors.<\/p>\n
Earlier this month, councilors also urged the administration
\nto review all the deals signed between the board and the
\ncompanies, most of which ran by Soeharto's family and close
\nfriends, saying that the concessions were awarded without open
\nbid.<\/p>\n
Several months ago, the board signed four MOUs on the
\nregeneration of the Kali Opak and Sunda Kelapa subdistricts with
\nunidentified private companies.<\/p>\n
The board planned to revitalize 81 hectares in Sunda Kelapa
\nand a 9.6-hectare plot in Luar Batang to be used as cultural
\npreservation areas.<\/p>\n
It also earmarked the restoration of a dock and traditional
\nshipbuilding factory which stands on a 3.1-hectare plot in the
\nhistorical Si Pitung complex in the eastern part of the Pantura
\narea.<\/p>\n
Lukman said the Pantura waterfront city plan was originally
\nproposed years ago by the City Council in a bid to anticipate the
\nneed to have another modern business district in Jakarta.<\/p>\n
\"We felt that the existing business center and gold triangle
\nareas of Jl. Sudirman, Jl. M.H. Thamrin and Kuningan district was
\nnot strong enough to support Jakarta in facing the Asian Free
\nTrade Area.\"<\/p>\n
Planned for the city were modern and internationally
\nstandardized business and trade facilities, a port, middle to
\nupscale housing estates, shopping centers, tourist sites,
\nindustry and warehouse centers, and other public facilities, he
\nsaid. (cst)<\/p>",
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