Indonesian Political, Business & Finance News

Bandung's Teras Cihampelas Officially Transferred to West Java Provincial Government

| | Source: MEDIA_INDONESIA Translated from Indonesian | Infrastructure
Bandung's Teras Cihampelas Officially Transferred to West Java Provincial Government
Image: MEDIA_INDONESIA

The Bandung City Government (Pemkot) has officially granted the Jalan Cihampelas assets to the West Java Provincial Government (Pemprov Jabar), through the signing of the Regional Grant Agreement (NPHD) and the Deed of Handover (BAST) 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 Jalan Cihampelas section. The asset transfer was carried out after the road was designated a provincial road based on a West Java Governor’s Decree issued on 30 June 2026.

“The grant covers the road land, road construction, and all facilities, infrastructure and utilities along the Jalan Cihampelas section, transferred from the inventory administration of the Bandung City Government to the West Java Provincial Government,” he explained.

According to him, the grant process has 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. Once the asset officially falls under the authority of the West Java Provincial Government, the demolition of Teras Cihampelas will be carried out through an open auction mechanism.

“The company that wins the auction will not receive a demolition budget; on the contrary, it must provide economic value to the provincial government as part of the asset utilisation process. The concept is total demolition. Companies bidding in the demolition auction must pay a certain economic value to the provincial government. All auction and appraisal processes rest with the provincial government,” he elaborated.

Farhan said the decision was the result of lengthy discussions between himself and Governor Dedi Mulyadi, taking into account various aspects of spatial planning, urban aesthetics, and administrative certainty. 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 functional certificate cannot be issued. Administratively, we cannot keep defending it either,” he added.

He added that the Bandung City Government had previously consulted with the Supreme Audit Agency (BPK), the Finance and Development Supervisory Agency (BPKP), and the Corruption Eradication Commission (KPK). Based on these consultations, the demolition auction mechanism was deemed the most appropriate way to avoid potential losses to the state. Although the asset has been granted away, the greatest benefit for Bandung City will be better and more integrated area development.

A FORM OF COLLABORATION

Meanwhile, Governor Dedi Mulyadi said the transfer of authority is a form of collaboration between the West Java Provincial Government and the Bandung City Government to accelerate the resolution of issues in the Cihampelas area. Once the administrative process is complete, the provincial government will immediately carry out redevelopment so that Cihampelas can once again become a centre of creative industry, fashion, and shopping tourism, as it was in its heyday.

“Teras Cihampelas has been handed over to the provincial government. Next, we will take administrative steps to restore Cihampelas to its former glory as a centre of creative industry, a fashion hub, and a destination for the public, including foreign tourists,” he explained.

He 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 maintained. The difference is that Cihampelas will become a comfortable and better-organised centre of creative economy,” he said.

View JSON | Print