Govt ready to negotiate on Senayan complex<\/p>\n
Fabiola Desy Unidjaja, The Jakarta Post\/Jakarta<\/p>\n
Following the asset preservation order imposed by the Central
\nJakarta District Court on the Senayan Square complex, the
\ngovernment is ready for negotiation with the management of the
\ncomplex over eight hectares of land left vacant by the developer.<\/p>\n
State Secretary Yusril Ihza Mahendra said on Friday that the
\ngovernment was willing to halt the case temporarily.<\/p>\n
\"The government is asking the management to fulfill its
\n(original) agreement by building on the whole 20-hectare area and
\nto return it to the government in 40 years time,\" he said.<\/p>\n
\"After 15 years of operation, the management has still left
\neight hectares of land vacant, blaming the economic crisis that
\nhit the country in mid-1997 for the halt in the development. We
\nwant them to make use of the land as stated in the agreement.\"<\/p>\n
Yusril said that the management was supposed to build a hotel
\nor an office building or an athletes center on the vacant land.<\/p>\n
The agreement between the Bung Karno Sports Complex Management
\nBoard (BPGBK) and the Kojima Overseas Asia Pte. Ltd., a
\nSingaporean-based subsidiary of Japanese real estate Kojima
\nCooperation, was made in July 1989.<\/p>\n
The Build-Operate-Transfer (BOT) deal stipulates that after 40
\nyears the whole compound, including the buildings, must be
\nreturned to the government.<\/p>\n
Representatives of Kojima were disappointed with the court's
\nverdict to freeze the eight hectares of land, saying they were
\nnot summoned to the court over the case.<\/p>\n
The BPGBK is asking for US$225 million in compensation for
\nstate losses.<\/p>\n
However, Yusril's statement was different from the court
\nbailiff. The bailiff said that the frozen assets include the
\nPlaza Senayan Mall, Plaza Senayan Apartments, their parking and
\nfood court buildings and the Plaza Senayan Annex Living Stone
\nbuilding, which is currently under construction.<\/p>\n
Yusril said before submitting the case to the court, the state
\nsecretary and the BPGBK had tried to discuss the case with
\nrelevant parties. \"We failed to find a solution during the
\nnegotiation, so we decided to go to court.\"<\/p>\n
He added that the agreement did not carry a time frame for
\nconstruction on the remaining eight hectares.<\/p>\n
The construction of the mall as well as other commercial
\npremises within the sports complex, which was built in the 1960s
\nto host the fourth Asian Games, sparked controversy in the early
\n1990s since the complex should have remained a sports center
\ninstead of being converted for commercial purposes.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-ready-to-negotiate-on-senayan-complex-1447893297",
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"sponsor": "Okusi Associates",
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