Bulog cancels land swap deal with Goro

JAKARTA (JP): State Logistics Agency (Bulog) said it has reversed a 1996 land swap deal with PT Goro Batara Sakti, a private wholesale company which until recently was owned by former president Soeharto's youngest son Hutomo Mandala Putra.

Bulog chairman Beddu Amang said on Tuesday that the deal had been reversed because of the change in Goro's ownership. Under the deal, Goro swapped a 75 hectare site in Merunda near Tanjung Priok port for a 50 hectare site owned by the agency near the expensive residential area of Kelapa Gading in North Jakarta.

"The deal has been reversed because PT Humpuss sold Goro to Inkud (the Confederation of Indonesian Primary Cooperatives' Associations)," Beddu told House of Representatives Commission III for agriculture, forestry and plantations, transmigration and food affairs on Tuesday.

PT Humpuss, controlled by Hutomo, owned the wholesale chain through PT Goro Batara Sakti and PT Goro Yudhistira Utama.

Goro has two sales outlets, one in Pasar Minggu, South Jakarta, and a second in Kelapa Gading. The Goro wholesale outlet in Kelapa Gading stands on the plot of land at the center of the controversy.

In October 1996 Goro swapped its 75 hectare Marunda site for the 50 hectare plot in Kelapa Gading where it operated a 270,000 ton capacity warehouse.

Under the deal, Goro was required to build a 450,000 ton warehouse on the Marunda site. It failed to meet this obligation, but nevertheless went on to construct a sales outlet over eight hectares of the Kelapa Gading site.

Beddu said that Inkud, Goro's new owner, had asked the agency to grant it the sales outlet site in Kelapa Gading, but this plea had been rebuffed because the land belonged to the state.

Inkud then offered an unspecified part of its stake in Goro to Bulog, he added.

"But we refused the offer because accepting it would have got us into trouble," he said.

Beddu said that the agency had offered to lease four hectares of the disputed land to Goro, and take the remaining four hectares back under its control.

"We are still waiting for an answer from Inkud," he said.

Until recently, PT Goro Batara Sakti had a 55 percent controlling stake in Goro, which was established in 1995. The remaining 45 percent was owned by PT Goro Yudhistira Utama.

PT Humpuss formerly owned 80 percent in PT Goro Batara, which held a 75 percent stake in PT Goro Yudhistiro. The remaining 20 percent stake in PT Goro Batara was owned by businessman Ricardo Gelael.

Inkud, which before the sale of Goro shares owned a 25 percent stake in Goro Yudhistiro, now controls 100 percent of the wholesale company. (gis)