Central Jakarta Mayor okays leasing of city assets

Central Jakarta Mayor okays leasing of city assets

JAKARTA (JP): Central Jakarta Mayor Andi Subur Abdullah said
on Tuesday that his office would let city assets be leased to
third parties as long as the deals benefited the city's revenue
and the assets were maintained.

"The leasing of city assets is tolerable only when the
arrangements are in line with valid procedures and intended to
maintain the assets from deterioration," he told reporters on the
sidelines of a City Council plenary meeting on Tuesday.

It was reported that several assets, such as subdistrict
offices, were being leased to third parties and used for economic
activities instead of public services.

"I've followed up on those reports and found that the offices
were no longer in use. The leasing was meant to keep the offices
from deterioration and to get additional funds for maintenance
activities," Andi said.

"You know we have a very limited maintenance budget. By
leasing the offices, we can get more maintenance funds," he
added.

The mayor, however, said none of the existing leasing
agreements were made upon his consent.

"I have ordered my officials to return the assets and stop the
leasing agreements. Interested parties have to follow standard
procedures before using the assets," he said.

"Besides, such agreements are prone to irregularities and it
will be difficult to get accountable reports," he added.

He said he preferred to lend the offices to local residents
than to business ventures.

"Local residents can use the assets for their benefit, such as
for meeting places. While, business ventures only benefit the
owners," he said, pointing out that leasing the assets to
businesspeople would mean more money for the administration.

"But we must be very careful that the offices still belong to
the administration. We have to prevent that the ownership of the
leased assets from being transferred to the proprietors," he
added.

On Monday, head of City Assets Office Husein Jawas told
reporters that the offices had been used for commercial
activities, such as minimarkets, telecommunication shops or even
movie theaters by the heads or former heads of the subdistricts.

"The former office of Kebon Kelapa subdistrict in East
Jakarta, for example, is being leased for Rp 4.5 million, while
the former office of Petojo subdistrict in Central Jakarta is
being leased for Rp 5.4 million. Both former offices were turned
into telecommunication shops," he said.

"Meanwhile, the former office of Karang Anyar subdistrict in
Central Jakarta is even being leased for free and has been turned
into a minimarket," he added.

Husein aired concern over the lease agreement because the
ownership of city assets could be transferred to the proprietors.

"My office's responsibility is just to list the leased assets
and make a report to City Secretary Fauzi Bowo. But we do not
have the authority to take any action," he said. (nvn)