Bakrie subsidiary urged to fulfill deal

JAKARTA (JP): Councilors yesterday urged the city administration to stop dragging its heels and force PT Catur Swasakti Utama, a subsidiary of the widely-diversified Bakrie group, to fulfill the terms of a land exchange deal with the city.

The councilors said the company, which developed Taman Rasuna Apartments in Kuningan, South Jakarta, had yet to begin projects to replace a nursing home and two primary schools demolished when construction of the apartments began in 1994.

Ida Mawaddah Noor from Commission E for social welfare said the city administration must ensure that the developers fulfilled their obligation.

"The administration may bring the company to court if they do not settle the problem," she said.

Under the terms of the deal, the company was required to provide the city with a 5,322 square meter plot and build a nursing home on a 10,000 square meter plot of land to compensate for demolishing Menteng Atas nursing home.

The company, she said, had frequently ignored invitations to discuss the matter with the administration and had also claimed it would be unable to begin work on the project while the monetary crisis persisted.

"I think the company management never had any intention of keeping their side of the bargain.

"They have taken the administration's assets and given nothing in return but empty promises," Ida added.

Fellow councilor Nitra Arsyad said the swap deal had resulted in great losses to the city.

"The company received city assets and profited from the sale of apartments but gave the city nothing in exchange," he said.

"I think the administration has been robbed. It was a polite robbery because it was done by well-groomed people," Nitra added.

No Bakrie executives could be reached for comment last night.

The company has been involved in numerous disputes with the city administration since the apartment project began.

The planned development consists of two complexes with a total of 27 towers. Unit prices range between Rp 125 million and Rp 900 million. The first complex of 16 towers and 3,850 units was completed early last year. Most apartments have been bought by expatriates.

The administration instructed the company to suspend demolition of buildings on the site in August 1994 because it had not yet obtained the necessary permits, the councilors said.

But the company ignored the protests and pressed ahead with the work, Ida added.

"They even demolished parts of the primary schools during teaching hours," she said.

Nitra said the city administration had penalized the company for violating construction regulations.

The penalty imposed required the company to build a junior high school worth Rp 900 million in Cipulir and develop a mosque worth Rp 400 billion in Petukangan Utara, both in South Jakarta.

"Neither of these projects have begun," he said.

The councilors also questioned why the administration was so reluctant to force the firm to fulfill its obligations.

"There might be collusion between the company and officials in the administration," he said. (cst)