State secretary defends project of President's son<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
State Secretary Bambang Kesowo defended on Wednesday the decision
\nto grant President Megawati Soekarnoputri's son Mohammad Rizki
\nPratama rights to develop and manage a 17-hectare lot at the 40-
\nhectare Kemayoran fairground complex, saying it was not in
\nviolation of law.<\/p>\n
Bambang also stressed that he had known from the very
\nbeginning that Pratama, or Tatam as he is known, was involved in
\na project to develop a plot of land in Kemayoran, Central
\nJakarta.<\/p>\n
"If he (Tatam) runs his business without taking any concession
\nor selling state assets, but instead encourages foreign investors
\nto invest, then why not?" Bambang said in a hearing with the
\nHouse of Representatives Commission I, which is responsible for
\nthe State Secretariat, among other things.<\/p>\n
Tatam, through PT Theda Persada Nusantara, has acquired the
\nright to develop and manage 17 hectares of land at the Kemayoran
\nfairground complex. The details of the project, however, remain
\nunclear.<\/p>\n
According to Bambang, Tatam had originally planned to build
\nhigh quality apartments, a shopping center and a hypermarket
\nworth up to Rp 6 trillion (US$750 million) on a 30-hectare lot in
\nKemayoran.<\/p>\n
However, after due assessment the Kemayoran New Town Authority
\n(DPPPKK) granted the company the right to develop only 17
\nhectares with the total project value being Rp 1.6 trillion.<\/p>\n
Bambang, who is legally in charge of the Kemayoran fairground
\ncomplex, did not explain why Tatam had only been granted 17
\nhectares.<\/p>\n
PT Theda signed an agreement with Li Zhaoling (Chinese
\nbusinessperson associated with the Beijing Returned Overseas
\nChinese Federation Partners) on July 29 to develop the site.<\/p>\n
Lawmakers had criticized the selection of Tatam's company to
\ndevelop the land, saying that the project should have been put
\nout to tender.<\/p>\n
Legislator Effendy Choirie of the National Awakening Party
\n(PKB) has suggested that preferential treatment had been given to
\nTatam by his being allowed to control and develop the site in the
\nKemayoran commercial district without a public tender being held.<\/p>\n
Some investors, including PT Astra and Pepabri (the
\nassociation of retired military officers), had also submitted
\nproposals but later withdrew them for unknown reasons.<\/p>\n
Bambang emphasized that a public tender was not needed for a
\ncompany which intended to develop a project. Currently, there is
\nno law regulating the use of state assets.<\/p>\n
He said that the Kemayoran complex was a state asset allocated
\nfor business, commercial information (Jakarta International Trade
\nFair), housing, and other supporting infrastructure, including
\nshopping malls.<\/p>\n
Like the Bung Karno Sports Compound, the Kemayoran fairground
\ncomplex comes under the responsibility of the state secretary.<\/p>\n
Bambang said Tatam did not do the negotiating himself. "The
\nnegotiations were conducted by officials at director level in the
\ncompany," he said. Tatam is a member of the company's board of
\ncommissioners.<\/p>\n
According to Bambang, the 44-hectare site in Kemayoran is not
\nfor sale, but investors are being encouraged to develop parts of
\nthe commercial complex.<\/p>\n
"They take 17 hectare. The price is Rp 3 million per square
\nmeter," Bambang said, adding that the market price was Rp 2.5
\nmillion per square meter.<\/p>\n
Bambang said that the price of the land will determine how
\nmuch money will be contributed to the state once the developments
\nhave been completed.<\/p>\n
The state secretary criticized lawmakers who accused the
\nPresident of nepotism.<\/p>\n
"We should not engage in character assassination without
\nmaking a clear assessment of the issue," he said.<\/p>\n
Several legislators suggested that the President should tell
\nher son to quit the project for ethical reasons.<\/p>",
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