Billboard violate bylaw but still remain
Ahmad Junaidi, The Jakarta Post, Jakarta
Two advertising billboards located in the City Police headquarters on Jl. Gatot Subroto, South Jakarta, and the Hotel Indonesia compound, Central Jakarta, have been considered violating regulations.
A giant billboard of a cigarette product at the police headquarters allegedly violates Article 15 (a) of the City Bylaw No. 28/1998 on advertisements and advertising tax which bans billboards from government office yards.
The other billboard, also promoting smoking, in the Hotel Indonesia compound breaches the Gubernatorial Decree No. 702/1992 which set aside billboard-free areas.
Both billboard permits were in fact signed by City Governor Sutiyoso in 1999 to an advertising agency PT Media Indra Buana (MIB). The company pocketed a three-year permit to manage the billboards.
However, City Spokesman Muhayat told The Jakarta Post on Saturday that both billboards did not violate the bylaw since they stood more than 200 meters from the headquarters or the hotel building.
Officials of PT MIB were unavailable for comments.
The company has established itself as a favorite firm by the administration and dominates billboard management throughout the capital, taking over the position previously controlled by PT Humpuss Media Luar Ruang.
PT Humpuss -- a company controlled by former president Soeharto's youngest son Hutomo "Tommy" Mandala Putra, who is now being detained at the Cipinang penitentiary -- failed to maintain its domination after the downfall of Soeharto in May 1998.
As if confirming PT MIB domination, the administration even directly appointed the company, owned by Nyomananda, to manage 10 spots for billboards worth Rp 14 billion (US$1.4 million).
The 10 spots are located on Jl. MT. Haryono and Jl. Pasar Rebo in East Jakarta; Jl. Gatot Subroto, Jl. Rasuna Said and Jl. Kemang Raya, in South Jakarta; Jl. Tomang Raya, Jl. Panjang and Jl. Arjuna in West Jakarta, and Jl. Asia Afrika and Jl. RM. Margono Margodirejo in Central Jakarta.
The reason to appoint PT MIB was merely to get the money quickly, which is needed for the Hotel Indonesia traffic circle renovation.
Muhayat denied that the administration has never offered the project through an open tender process.
"We have offered the spots to other advertising agencies, but they refused it. Now they claimed that the price is too low," he said.
Government regulations stipulate an open tender if a government project is worth more than Rp 5 billion.
The administration might claim of earning Rp 14 billion from the 10 spots but many believed it would get more as some of the spots are located in prime areas, also known as first ring areas.
The price of a billboard spot in a first ring area, including Jl. Jend. Sudirman, Jl. M.H. Thamrin in Central Jakarta or Jl. Sisingamangaraja and Jl. Rasuna Said in South Jakarta, has reportedly reached between Rp 2 billion and Rp 3 billion each.
However, Muhayat said the spots in the prime areas were offered lower, at only Rp 1.2 billion.
Head of the City Revenue Agency, Deden Supriadi, admitted on Thursday that seven of the 10 spots to be managed by PT MIB were located in prime areas.
"I can confirm that seven of them are located in prime areas but I don't know the price," he said.
Selling billboard spots will be disbursed to the agency as a billboard tax.