City-owned property firms merged into one

JAKARTA (JP): The city administration launched on Friday a holding company in the property sector, a merger between city-run developers PT Pembangunan Pluit Jaya, PT Pembangunan Pantura Jaya, and PT Pulo Mas Jaya.

Deputy Governor for Economic Affairs, Fauzie Alvi Yasin, said the holding company, named PT Jakarta Propertindo, was the first of five holding companies to be established.

"With the merger of the three companies, we will increase the efficiency, bargaining position and network of future operations," said Fauzie in a press meeting.

The city administration has announced plans to set up five holding companies for its 33 city-owned companies, focusing on property, trading and manufacturing, finance and insurance, hotels and tourism, and general services.

The aim of restructuring the city firms is to improve their performance and profitability.

All of the five holding firms will be under the coordination of an institution to be called Jakarta Incorporated, with the governor as chief commissioner.

"The three companies will continue with their own business plans, while the holding company completes the restructuring," Fauzie added.

Fauzie said Hari Sanjoyo, now president of PT Pembangunan Sarana Jaya, had been appointed as the president of the holding company.

He said chief commissioner of the holding company was Ongky Sukasah, who is assistant to the city secretary for development affairs.

The administration has conducted fit-and-proper tests for all 69 candidates for directors of the holding firms. The candidates are mostly executives of the existing firms plus several members of major political parties proposed by the city council.

"Another city-run company, PT Pembangunan Sarana Jaya, will join the holding company shortly after the completion of its due diligence," said Fauzie.

The holding company has an authorized capital of Rp 555 billion (about US$61 million) with paid up capital of Rp 132.2 billion. It has a total of 300 employees from all the companies.

PT Pembangunan Pluit Jaya, set up in 1997, manages a total of 2,650 hectares of property and real estate development in Pluit, North Jakarta.

The area is planned to become part of the future Jakarta waterfront city, currently under the management of PT Pembangunan Pantura Jaya, comprising residential, commercial, recreation and industry areas.

Meanwhile, PT Pulo Mas Jaya manages offices, apartments, cafes, a horse racing facility, a football field and a parking lot. (07)