Mon, 25 Jul 2005

Canal project produces instant millionaires

Damar Harsanto, The Jakarta Post, Jakarta

Chairun Nikmah, a resident of Pondok Kopi, East Jakarta, was more than happy with the cheque for Rp 2.476 billion he received last Friday from the city administration.

Chairan's 2,159 square meter plot of land was acquired by the administration for the East Flood Canal project.

The city administration, which had initially struggled to acquire land for the stalled East Flood Canal project, offered to pay compensation worth Rp 1.147 million per square meter in accordance with the 2005 taxable value of property (NJOP).

Chairun was one of 30 residents from six subdistricts who received a cheque on Friday from the administration.

"I am satisfied with the money," said Sutoro who received Rp 100.9 million for 88 sq m of land.

Jakarta Governor Sutiyoso and East Jakarta Mayor Koesnan Abdul Halim witnessed the handing over of the cheques.

Four hundred and fifty four families will receive this month cheques for a total of 12.43 hectares of land and properties of 53,643 sq m worth Rp 153.1 billion in five subdistricts: Pondok Kopi, Pulogebang, Duren Sawit, Malaka Jaya, Cipinang Besar Selatan and Pondok Bambu.

"I want to thank residents who have lent their support to the East Flood Canal project. As you know the project is vital to mitigate annual flooding in the capital considering the facts that 40 percent of the city's areas are under sea level and there are 13 rivers flowing here," Sutiyoso said.

He reiterated that his administration would implement the controversial presidential decree on land acquisition for public projects.

"In the case of residents who refuse to accept the amount we offer we will let the court resolve the dispute and we will consign the fund to the court for the duration of the legal process," he said.

He said Presidential Decree No. 36/2005 allocated 90 days for negotiations over land acquisition before the matter was handed to the court.

The project is estimated to cost a total of Rp 4.9 trillion, Rp 2.5 trillion for physical development costs will be shouldered by the central government, leaving Rp 2.4 trillion for land acquisition.

Last year, the administration acquired 42.84 hectares, or 24.46 percent of the total 224.66 hectares needed for the project.

This year, the administration has allocated Rp 450 billion for land acquisition in East Jakarta and North Jakarta.

When completed, the East Flood Canal will stretch over 23 kilometers from Cipinang district in East Jakarta to Marunda in North Jakarta and will be between 100 and 300 meters wide. It will also link the existing West Flood Canal to create a semicircular canal that will channel runoff from the 13 rivers that flow through the capital.