City plans to expand Pulogadung estate

City plans to expand Pulogadung estate

JAKARTA (JP): City administration, in cooperation with a
private company, plans to expand the Pulogadung industrial
estate, East Jakarta by 80 hectares.

A source at the city administration told reporters yesterday
that the expansion is needed to transform the estate, which was
established in 1973, so the complex will be "better organized."

Currently, the Pulogadung industrial estate is located on a
570 hectare plot of land and is believed to be the most expensive
industrial estate in the city, where a company should pay US$12
per square-meter in rent.

The city administration is cooperating with the private
company because it has not enough funds to carry out the
expansion plan, said a source who spoke on condition of
anonymity.

The source said that each party, the Pulogadung industrial
estate authority and PT Cakra Sarana Persada, already has
obtained 30 hectares of land and still needs another 20 hectares.

Since the land is owned by local residents the city
administration needs approval from the city council to
appropriate the land.

Indonesian Democratic Party representative in the city council
Lukman Mokoginta told reporters yesterday that the city
administration should be transparent in setting the compensation
rates for the land.

"It's all right to appropriate the land as long as the city
administration is setting the compensation fairly based on the
prevailing regulations," Lukman said.

He explained that under the regulation, compensation should be
based on the current value of taxable property.

Meanwhile, Secretary of the United Development Party Saud
Rachman opposed the plan, saying that the industrial estate is
not appropriate in the city because factories cause air
pollution.

"With the existing factories the air is already badly polluted
and the condition will be worse if more factories are built in
Pulogadung," Saud said.

On the other hand, he said, the expansion is contrary to the
city program to relocate factories to the city outskirts as well
as other towns near the city.

"So it is unacceptable for the city administration to expand
Pulogadung industrial estate," Saud said. (yns)