City Council to probe into troubled project

JAKARTA (JP): The City Council will investigate the construction of a condominium project that was built on the city administration's land in Pluit, North Jakarta, without their approval.

Bandjar Marpaung, chairman of the council's Commission B in charge of development affairs, said yesterday that the project, built by private developer PT Pelita Adhimakmur in cooperation with the city-owned Pluit industrial estate authority (BPL Pluit), has not received the City Council's approval.

He reiterated that any cooperation between city-owned companies or institutions with private companies should be approved by the City Council.

"According to existing regulations, any cooperation with private developers to use city land should get approval from the City Council," Bandjar said a meeting with the company's board directors.

He explained that his commission plans to investigate the case carefully.

"First, the commission will summon the management of BPL Pluit to explain the matter. Then we will ask them to start processing the permits for the construction of the building from the beginning again, including requesting approval from the council. It is impossible now to cancel the project, which is being built with a total investment of Rp 54 billion (US$24.54 million)," Bandjar said.

He said that under the second permit processing, the council will just study the terms covered in the cooperation agreement and make any suggestions if the terms are not to the city administration's advantage.

Bandjar said that the construction of the 268-unit condominium project has been completed and about 80 percent of have been sold.

"Currently, the developer is still in the process of obtaining a permit for the operation of the building from the City Development Supervision Agency, but I have ordered the agency to hold the permit until the whole licensing problem is settled," Bandjar said.

Saud Rahman, another member of the commission, questioned the motives of BPL Pluit, a city-owned company.

"BPL Pluit should have known about this regulation because it is standard procedure," Saud said.

He supports Bandjar's demand to withhold the operation permit by the City Development Supervision Agency.

Bandjar said that an agreement for the construction of the project was signed by BPL Pluit and PT Pelita Adimakmur in 1991.

The project consists of two luxury condominium towers covering 14,000 square meters.

In 1993, due to higher construction costs, both parties agreed to renew the agreement, in which the project would consist of three towers. (yns)