Bank DKI may use disputed Timor buildings: Sutiyoso

JAKARTA (JP): City-owned Bank DKI will likely take over two disputed Central Jakarta office buildings owned by former president Soeharto's youngest son, Governor Sutiyoso said on Thursday.

Companies owned by Hutomo "Tommy" Mandala Putra will relocate from the buildings on Jl. Medan Merdeka Timur to Bank DKI's office on Jl. Juanda III, Central Jakarta, in an exchange deal, Sutiyoso said.

Use of the buildings had been offered to government institutions, "but as there were no parties interested in the buildings, they will be taken over by Bank DKI.

"I think it is better if Bank DKI takes over the buildings as they are located near the City Hall," he told reporters at an installation ceremony for seven new city department heads.

After Soeharto quit office on May 21, the administration declared that the 18-story Humpuss building -- housing Tommy's widely diversified business group -- and the seven-story Timor building bearing the name of Tommy's controversial car project had violated land use regulations.

Presidential Decree No. 25/1995 on the development of the Medan Merdeka area forbids private companies from building offices.

The area is a buffer zone for the development of Medan Merdeka Park, where the National Monument (Monas) stands.

Despite the decree, Tommy built the two office buildings while his father was in power. There was no public denunciation at the time.

Last June, Tommy asked Governor Sutiyoso to help him sell the two properties to state enterprises.

In August, Central Jakarta Mayor Andi Subur Abdullah stated the mayoralty had given Tommy two months to vacate the buildings.

However, Andi Subur told reporters on Thursday that the mayoralty had lengthened the deadline to one year because it was difficult to relocate the companies, employing about 3,000 workers in the two buildings.

Sutiyoso admitted that Tommy had argued about the logistical difficulties in moving offices, but said his administration was not cowed by the once-omnipotent Soeharto family.

"It's not true that we are weak in facing Tommy. We should be prudent in implementing the policy as there are also other buildings, like those housing (national flag carrier) Garuda Indonesia airlines and Antara news agency which have also broken the regulations."

A source said Tommy had asked the administration to reveal other buildings in the Medan Merdeka area which also broke the regulations.

Separately, City Council spokesman Edy Walujo said the exchange arrangement should under a technical evaluation to determine if it was fair.

"Councilors should be involved in the plan so that people or the administration won't suffer financial losses."

At Thursday's ceremony, Sutiyoso installed Bambang Sungkono, head of the development planning board; Sutardjianto, city inspectorate office; Deddy Ruswendi, city office of the Ministry of Health; Erniek Suprapti, city office of the Ministry of Social Services; Samsul Chorib, city office of the State Receivership Agency; Hasanudin, city office of the Ministry of Justice; and Yohanes Moeryono, city office of the Ministry of Transmigration and Resettlement of Forest Nomads. (ind)