City firm has quietly sold land in Cibubur

JAKARTA (JP): City property company PT Sarana Jaya has quietly sold 3.2 hectares in Cibubur, East Jakarta to a private company and distributed some of the money to its employees, a city councillor revealed on Tuesday.

Secretary of Commission B for Economic Affairs Dani Anwar said a shopping center would be built on the plot, worth Rp 27.2 billion (about US$2.86 million) with the selling price set at Rp 850 thousand per square meter.

"Sarana Jaya claimed that the sale was urgent to cover its debts, but they should have informed us of any change in the status of a city asset," said Dani.

Speaking in a hearing with Sarana Jaya directors, Dani said the move did not comply with the company's mandate of leasing the site.

The company's former president Hari Sandjojo confirmed the sale, but defended the move because the company was in need of cash to repay Rp 43 billion debt accrued since 1992.

"The Cibubur site is part of our trading assets, so we did not need any approval from the city administration or city council to sell it," said Hari, who was replaced by Tebian Amari last month.

Hari said that the governor had been informed of the decision in December last year, according to the procedure stipulated in 1991 City Bylaw No. 1 regarding the property company.

He said the company had yet to release the land due to incomplete land certificates and had received only Rp 2 billion down payment.

Dani said Rp 130 million of the down payment reportedly had been distributed to all the company's employees.

"It indicates collusion among officials of the company. Can you imagine that the money was distributed to all employees from parking attendant to director?" said Dani.

Another councillor, Sambudi Bakri of the National Mandate Party (PAN), said city council would investigate the case and other irregularities involving the company.

In response to the suspicion, Hari said the fund was part of "operational costs" given to company employees involved in the sale of the land.

Hari added that there was a total of 100 hectares of trading assets across the capital, including 20 hectares in Pulo Jahe, 20 hectares in Pondok Aren and Pondok Kacang, both located in Tangerang. (07)