Indonesian Political, Business & Finance News

City planning full of inconsistencies

| Source: JP

City planning full of inconsistencies

By Edith Hartanto and Hyginus Hardoyo

JAKARTA (JP): Life in Jakarta is a matter of survival.

Besides being forced to struggle for everyday needs, including
food and clothing, people have to be clever enough to choose
strategic plots of land either for residences or businesses.

Sometimes shrewdness alone is not enough because people can
still fall victim to the city administration's poor supervision
and implementation of land use regulations, even if they have met
all the mandatory requirements.

Inconsistency in city planning can deal a heavy blow to the
public as it frequently results in buildings being demolished or
their owners being evicted for the sake of what officials call
"upholding the city's regulations".

On the surface, the capital -- home to at least nine million
people -- seems to only care about building more skyscrapers and
other projects considered profitable, even though the rules have
to be "bent and broken" to ensure a venture is completed.

Controversies over inconsistency have been in the spotlight
this year mainly because of rampant land use violations in Kemang
where many homes in the residential area have been convert for
commercial activities; the construction of Hotel Mulia Senayan,
which exceeded its permitted height; as well as the relocation of
Blok P Cemetery -- all in South Jakarta.

According to the city's 1985/2005 spatial plan, Kemang was
designated a residential area, which has become known as the
center for expatriates.

Due to the dynamic demands and needs of its community, Kemang
has developed over the last 15 years into an amusement and
business area with 248 commercial outlets ranging from bars,
cafes and restaurants to art shops. These outlets are scattered
along the narrow streets of Kemang Raya, Bangka Raya and
Prapanca.

Every night, hundreds of celebrities, businesspeople, artists,
intellectuals, professionals and university students -- many
sporting flash cars -- flock to Kemang.

Businesses, which according to existing regulations should
occupy only 15 percent of the area, now occupy more than 90
percent.

Not surprisingly, the area's transformation has created new
problems including traffic congestion, a lack of parking spaces
and the demolition of sidewalks.

Former governor Surjadi Soedirdja, whose term ended last
October, took the blame for the transformation of the area,
saying that besides poor supervision there had been "too much
abuse of temporary permits" by city agencies.

A gubernatorial decree was issued on March 18 stating that all
building permits in the area were to be checked in a bid to
restore Kemang to its original purpose.

A special team from the Bandung Institute of Technology,
headed by Muhammad Danisworo, who is also chairman of the city's
architectural team, was ordered to conduct a six-month study of
building usage in Kemang.

"The area has been left uncontrolled for a long time,"
Danisworo said.

After confusion over whether Kemang businesses would be
allowed to continue operating, Governor Sutiyoso finally decided
last month to close down 180 businesses which lacked proper
permits.

Of the 180 businesses, 22 have been shut. Among those who have
closed their doors were Cafe Padussi, J & J Restaurant, Rossini
Bakery, Star Mart mini mart, BCA bank, Iams Eukanuba pet food
shop, Linggar gallery & restaurant, Nu Look Laundry and Kemang
Jaya Photo Studio.

Business owners protested the action which was viewed as
unfair.

"Why were we given the permits (to do business) when they know
the area is a residential site?" Atik Yunaeni, one businesswoman
said.

Danisworo urged the city to be more open-minded in its view of
urban transformation.

"It's time the city dealt with the matter properly to help
save the 4,000 workers who will be affected."

South Jakarta mayoralty has recommended Kemang businesspeople
relocate to three alternative sites in South Jakarta: Jl.
Panglima Polim, Jl. Warung Buncit and Jl. Radio Dalam. The
businesspeople have not responded to the offer.

Hotel Mulia

The construction of Hotel Mulia made headlines after it was
revealed that the five-star hotel was reportedly built on a green
area and exceeded its permitted height.

Then just last month, the developer announced that it had been
given a "green light" to breach the height limitation.

The project had proceed because it was desperately needed and
had to be completed within 10 months for the sake of the 19th SEA
Games in October.

No contractors were willing to develop a hotel on such a tight
schedule. But Gelora Senayan Management Board later awarded Mulia
Group the US$240 million project apparently with an understanding
that the group could build a second tower adjacent to the hotel.

The hotel's construction started in November 1996 and was
inaugurated by President Soeharto in September.

Under the plan, cosigned by the city governor and
minister/state secretary, the hotel was permitted to have 16
floors but instead stands 40 stories high with 1,008 rooms.

The hotel's management insists that it will complete the
second 56-story tower regardless of objections from city
councilors on the ground that the project may affect traffic on
surrounding roads -- as the hotel has insufficient parking -- and
encroach on pedestrian sidewalks.

Speaking on behalf of the hotel's management, Enggartiasto
Lukita said construction on the second tower would be delayed
temporarily due to the monetary crisis.

"But we will continue the project later. We can't possibly get
sufficient investment returns if we don't build (the second
tower)," Enggar said.

According to city bylaw No. 4/1975, if the second tower is
built, the hotel will be subject to Rp 72.32 billion (US$14.46
million) in fines for violating height regulations in addition to
Rp 20.8 billion in fines for the first tower.

To date there has been no official answer from the
municipality regarding the hotel's development of a second tower.

The hotel's management refuses to pay the fine, saying that no
such obligation was mentioned in its agreement for construction
of the hotel.

"The municipality has freed us from all that since the
beginning of the contract," Enggar said.

Panangian Simanungkalit, chairman of the Center for Indonesian
Property Studies, expressed concern over the number of buildings
constructed before their building permits were issued.

This phenomenon stems from selective enforcement of the law,
which can be influenced by political power and money, he said.

And the penalty for developers who violate such regulations
are too small -- only 8 percent of the difference in the residual
land value of the building before and after the violation, he
said.

A similar fine in Singapore, however, is set at 50 percent --
enough for the government to build the necessary infrastructure
to compensate for the impact of the violation.

Because the fine in Indonesia is tiny compared to the
advantages a developer can obtain after the violation, such
breaches are now commonplace, he said.

Cemetery

The inconsistency in implementing land use regulations does
not only affect the living.

Last September, the South Jakarta mayoralty decided to
relocate 4,626 graves at Blok P Cemetery, including that of Ade
Irma Suryani who was shot dead in a coup attempt by the banned
Indonesian Communist Party in the early hours of Oct. 1, 1965.

Ade Irma, who is revered as a national hero, was the youngest
daughter of former House speaker and respected senior military
member Gen. (ret) Abdul Harris Nasution.

News of the relocation, to make way for a new mayoralty
office, sparked a public outcry.

The public response illustrated people's displeasure at the
insensitivity, as well as the arrogance, of the municipality in
handling the affair.

After a month-long battle, the municipality eventually backed
down and settled the matter with the Nasution family.

Ade Irma's grave was not removed and the city even agreed to
build a monument on the site, which will be integrated into the
development of the South Jakarta mayoralty office.

As for the other graves, however, the municipality relocated
them to other cemeteries, including Tanah Kusir and Srengseng
Sawah, both in South Jakarta.

The entire affair nevertheless created a feeling of
uncertainty about the permanency of a cemetery if even important
national figures such as Ade Irma are not spared from
bureaucratic decisions to reuse public cemetery land.

Putting aside the argument about whether the municipality
needs a new office, this case is cold comfort to anyone planning
a burial in one of the city's public cemeteries.

It seems that even in death people cannot avoid the hands of
bureaucracy.

"This is Jakarta, where even the dead can be evicted for the
sake of development. Rest in peace? I don't think so. There is no
'rest' in this city," Reza P. Lontoh, a man whose father was
buried at Blok P Cemetery, said.

Noted urban planner Adhi Moersid and sociologist Sardjono
Jatiman underlined the importance of consistency in the
implementation of the city plans to avoid further overlapping.

Adhi, who won the Aga Khan Award for architecture and was
former chairman of the Indonesian Architects Association,
expressed concern over the many developments which were not given
serious thought.

"Currently there's a wide gap between the high demand for fast
development and the lack of detailed planning to support it," he
said, adding that this is a serious and difficult task for the
city administration to solve.

"I know Jakarta wants to be equal with other big cities
overseas, but it doesn't make any sense if an area as large as
Jakarta is ruined by unplanned development.

He said most of the city's developments were still dominated
by those who had strong financial backing.

Sardjono, a lecturer of University of Indonesia, said that
consistency in the implementation of the city plan will prevent
violations of designated land use.

One of the most effective ways to prevent inconsistency,
according to Panangian, is transparency in the existing city
plan.

The municipality must give the public access to detailed
information on any projects, including the exact locations, size
of sites and the latest property prices.

He said that the price of land in Greater Jakarta has been
soaring, mostly driven by speculators and brokers who have inside
information on project plans.

Speculators and brokers often entice locals to sell land at
low prices and then resell it to developers at high prices.

"Such practices are unhealthy and unfair. Openness and
transparency in the latest spatial plan will help residents deal
with land brokers and speculators."

Panangian said the administration would gain public support if
it provided residents with detailed information about projects.

"The public, who are usually happy if the projects don't
disadvantage them, will give their support if they know they will
benefit too."

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