Indonesian Political, Business & Finance News

Bandung City Government Grants Cihampelas Road to West Java Provincial Government

| | Source: MEDIA_INDONESIA Translated from Indonesian | Infrastructure
Bandung City Government Grants Cihampelas Road to West Java Provincial Government
Image: MEDIA_INDONESIA

The Bandung City Government (Pemkot Bandung) has donated Jalan Cihampelas to the West Java Provincial Government (Pemprov Jabar). The signing of the regional grant agreement (NPHD) took place at Bandung City Hall on Wednesday (29/7).

Bandung Mayor Muhammad Farhan explained that the grant covers the road land, road construction, and all facilities, infrastructure and utilities along the Cihampelas stretch. The asset transfer was carried out after Jalan Cihampelas was designated a provincial road pursuant to a Decree of the Governor of West Java dated 30 June 2026.

“The grant comprises the road land, road construction, and all facilities, infrastructure and utilities along Jalan Cihampelas, transferred from the Bandung City regional property inventory to the West Java Provincial Government,” Farhan said.

He said the grant process had fulfilled all administrative requirements under Minister of Home Affairs Regulation Number 7 of 2024, including the request documents, dispositions, and the findings of the research team’s deliberations.

Farhan revealed that once the asset officially falls under the authority of the West Java Provincial Government, the demolition of Teras Cihampelas will proceed through an open auction mechanism. According to him, the company winning the auction will not receive a demolition budget; rather, it must instead pay economic value to the provincial government as part of the asset utilisation process.

“The concept is total demolition. The company that joins the demolition auction must pay a certain economic value to the provincial government. The entire auction and valuation process rests with the provincial government,” he said.

Farhan said the decision was the result of lengthy discussions between himself and West Java Governor Dedi Mulyadi, taking into account various aspects of spatial planning, urban aesthetics, and administrative certainty. He acknowledged that Teras Cihampelas has never had a clear status in spatial planning documents.

“Even the Ministry of Public Works and Housing could not define whether it is a building, a road, or a bridge. That is why, to this day, a certificate of proper function cannot be issued. Administratively, we cannot keep defending it indefinitely,” he said.

Farhan added that Pemkot Bandung had previously consulted the Supreme Audit Agency (BPK), the Finance and Development Supervisory Agency (BPKP), and the Corruption Eradication Commission (KPK). Based on those consultations, the auction-based demolition mechanism was deemed the most appropriate way to avoid potential losses to the state.

Although the asset has been granted away, Farhan stressed that the greatest benefit for Bandung will be better and more integrated area planning. “There is no horse-trading. What matters most is that we gain the benefit of proper area planning so that Cihampelas can be put in order again,” he said.

West Java Governor Dedi Mulyadi said the transfer of authority reflects collaboration between the West Java Provincial Government and the Bandung City Government to accelerate the resolution of problems in the Cihampelas area.

According to him, once the administrative process is complete, the provincial government will immediately carry out reorganisation so that Cihampelas can once again become a centre of the creative industry, fashion, and shopping tourism, as in its heyday.

“Teras Cihampelas has been handed over to the provincial government. Next, we will take administrative steps to immediately put Cihampelas right, so it returns to being a centre of the creative industry, a fashion hub, and a destination for visitors, including foreign tourists,” Dedi said.

Regarding the demolition, Dedi assured that the provincial government will first complete all administrative processes, asset appraisals, and the auction mechanism. “We will hold a demolition auction because the asset has value. Whoever offers the highest value earns the right to carry out the demolition,” he said.

He is targeting completion of the administrative process within one month so that demolition and area reorganisation can begin immediately. Dedi even hopes the Teras Cihampelas area will be cleared by October 2026.

Dedi also assured that the new development concept will retain the large trees along Jalan Cihampelas as the identity of the area. “The trees must not be felled. The shade will be preserved. The difference is that Cihampelas will become a comfortable and better-organised centre of the creative economy,” he said. (H-4)

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