City Council to probe into troubled project
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)