PT KAI eviction plan opposed<\/p>\n
Yuli Tri Suwarni, Bandung<\/p>\n
With their departure just a matter of time, thousands of people
\nliving on unused land across the country that belongings to state
\nrailway company PT KAI have been struggling for fair
\ncompensation.<\/p>\n
PT KAI is studying the possibility of inviting developers to
\ncooperate under a build-and-operate (KSO) arrangement, which will
\nallow the private sector to lease the plots under a long-term
\ncontract.<\/p>\n
Revenues from the scheme would be needed to cover the firm's
\nRp 134 billion (US$15.7 million) in annual losses. Its deficit as
\nof the first semester of 2003 stood at Rp 85.06 billion,
\naccording to KAI director Omar Berto.<\/p>\n
The losses were mainly attributed to fierce competition that
\nhas faced PT KAI, particularly after many airline companies
\nlowered fares and overland cargo companies improved services.<\/p>\n
The plots, covering a total of 670,000 square meters, are
\nlocated in 24 towns, including Bandung, Jakarta, Surabaya and
\nBukittinggi in West Sumatra.<\/p>\n
Twenty developers have shown interest in the plots offered by
\nPT KAI. In Surabaya, they have proposed construction of a
\nshopping center on Jl. Semut Baru, Jl. Johar and Jl. Gundih and
\nshopping and office blocks in the old Semut, Pasar Turi and
\nWonokromo railway stations.<\/p>\n
In Semarang, developers plan to build a container terminal on
\nJl. Ronggowarsito and a hotel in the former Lawangsewu building.<\/p>\n
A super block on 135,000 square meters of land, consisting of
\napartment blocks, a hotel and a shopping mall, will also be built
\nin Bandung, plus renovation of a hotel and a mall on a 65,000
\nsquare meter plot of land to replace Bandung station.<\/p>\n
The projects, however, are facing resistance. Protests from
\npeople who have been living on the company's land have been
\ncommonplace.<\/p>\n
Hundreds of residents in Kebon Jeruk subdistrict in Bandung
\nhave, since early May, been demanding higher compensation for
\ntheir departure. The squabbling is dragging on although the
\ndeveloper has obtained the required permits and the Environmental
\nImpact Assessment (Amdal) certificate.<\/p>\n
The developer has offered Rp 125,000 per square meter for a
\nnonpermanent building and Rp 210,000 per square meter for a
\npermanent building.<\/p>\n
A resident, Rahmat, 50, who has been living in the area for
\nabout 40 years, said the compensation was too small to buy a plot
\nof land or build a house in another area.<\/p>\n
He said he had spent tens of millions of rupiah on building
\nhis house. Some of his neighbors claimed even to have spent Rp
\n100 million.<\/p>\n
"PT KAI should at least pay half the amount the residents have
\nspent on their housing," he said.<\/p>\n
PT KAI spokesman Noor Hamidi took the complaints lightly.<\/p>\n
"They should thank the developer for being willing to pay
\ncompensation. We could just confiscate the land if necessary.
\nThose people have signed an agreement," said Hamidi.<\/p>\n
He said the residents had leased the land for only Rp 1,600
\nper square meter per year, which he said was a derisory amount.<\/p>\n
Without much effort, PT KAI stands to gain Rp 55.1 billion for
\nleasing 17 hectares of land in Kebon Jeruk under a 34-year
\ncontract, after evicting 1,500 families.<\/p>\n
He said as the railway transportation business was no longer
\nlucrative, the firm was trying to benefit from its assets as
\ntheir main money-spinner. The additional income could cover the
\nlosses in the railway operations.<\/p>\n
"We must do our utmost to keep the railway service intact.
\nMiddle- and lower-income people who depend a great deal on train
\nservices would bear the brunt if we were unable to operate
\nanymore," he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pt-kai-eviction-plan-opposed-1447893297",
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"sponsor": "Okusi Associates",
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