Tommy, Ciputra given project<\/p>\n
JAKARTA (JP): PT Citra Mandala Umbulan, a company jointly
\nowned by the Humpuss Group and the Ciputra Group, has been
\nappointed as the developer of the Rp 500 billion (US$215 million)
\nwater project in Umbulan, East Java, the province's governor,
\nBasofi Soedirman, said over the weekend.<\/p>\n
Basofi told Antara in Surabaya that the company would begin
\ndevelopment of the water project in March, next year.<\/p>\n
The Humpuss Group is controlled by the youngest son of
\nPresident Soeharto, Hutomo (Tommy) Mandala Putra, while the
\nCiputra Group is owned by property tycoon Ciputra.<\/p>\n
Basofi said the Umbulan project is designed to supply clean
\nwater to Citra Raya, a 2,000 hectare township in the western part
\nof Surabaya, which was developed by the Ciputra Group.<\/p>\n
The Umbulan project, around 55 kilometers south of Surabaya,
\nthe capital city of East Java province, is expected to supply
\naround 4,000 liters of water per second.<\/p>\n
It was offered for development to private companies 10 years
\nago, but the project's construction has been delayed.<\/p>\n
The first to apply was Citra Lamtorogung Persada, which is
\nowned by President Soeharto's eldest daughter, Siti Hardiyanti
\nRukmana (Mbak Tutut), and its two partners from Surabaya and
\nMalaysia.<\/p>\n
Many other private companies also expressed interest in the
\nproject. However, due to disagreement with the government over
\nthe water prices, they backed off. Among the companies were PT
\nBimantara Sitiwisesa, the Bakrie Group, PT Himpurna Ruba and PT
\nKrakatau Engineering.<\/p>\n
Minister of Public Works Radinal Moochtar earlier said that
\nthe developer of the water project should give priority to public
\ninterest by minimizing water prices.<\/p>\n
\"I understand that private companies want to make big profits,
\nbut they should also take into account the social aspect of the
\nproject,\" he said.<\/p>\n
But Radinal said the government would cut the water subsidies
\nto strike a balance between the interests of the government,
\nwhich gives priority to social aspects, and the interests of the
\nprivate sector, which gives priority to profits.<\/p>\n
The subsidy cut was expected to increase the price of water by
\nup to 25 percent. (bnt)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/tommy-ciputra-given-project-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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