Indonesian Political, Business & Finance News

Capital to extend 34 gas stations' land use permit

| Source: JP

Capital to extend 34 gas stations' land use permit

JAKARTA (JP): The city administration agreed on Thursday to
extend the land use permit of 34 gas stations occupying green
areas across the capital.

Assistant to the city secretary for administration affairs
Makmun Amin said the city administration would prepare a land use
contract of the green areas to define the business status of
these gas stations.

Speaking in a hearing with the City Council Commission C for
economic affairs, Makmun said the agreement would include the fee
that the gas stations would have to give the city administration
for the use of the green areas for a limited period. The stations
occupy 4.8 out of 2,050 hectares of green area in the city.

"In the future, these locations will be converted to parks as
they were originally intended to be. As for now, we need the gas
stations to support the city's campaign to use unleaded
gasoline," he said.

He was commenting on a statement issued by the head of the
supply and marketing division of Pertamina's Jakarta office Tuty
Anggraini, who said the state oil company would stop the gas
supply to the stations due to their incomplete business permits.

Based on the 1999 memorandum of understanding (MoU) signed by
the city administration, the federation of gas station
entrepreneurs and gas suppliers, the city administration allowed
the gas stations to occupy the green areas for five years
provided they supply Jakartans with unleaded gasoline, such as
high octane premix.

Among the owners of the gas stations is Vice President
Megawati Soekarnoputri's husband Taufik Kiemas, whose gas station
is located on the green area along Jl. Lapangan Ros Tebet, South
Jakarta.

Another gas station, situated near the Semanggi intersection
of Jl. Sudirman in South Jakarta, belongs to the widow of
national hero Yos Sudarso.

Most gas stations in the city belong to the families of top
military brass, former ministers or public figures.

Head of the gas station division of the National Federation of
Oil and Natural Gas Entrepreneurs Sofyan Zakaria, said there were
a total of 182 gas stations in the capital.

Sofyan said the gas stations occupying the city-owned green
areas provide at least 30 percent of the city's daily consumption
of leaded gasoline, which comprises 4,059,000 liters of premium
and 1,532,000 liters of diesel fuel.

"We are willing to pay for use of green areas as long as the
city administration guarantees our business status. We are
prepared to discuss the proposal with the related institutions,"
said Sofyan.

He said due to the city administration's unclear policy, of
the 16 gas station owners who signed the 1999 MoU, only one has
managed to fulfill the agreement of providing unleaded gasoline.

"Hopefully the new agreement will solve the problem," he said.
(07)

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