City stands to gain Rp 12t from reclamation project

Bambang Nurbianto, The Jakarta Post, Jakarta

Considering that the city administration would gain at least Rp 12 trillion from the reclamation of the northern coastal areas, it is understandable that Governor Sutiyoso is insisting on proceeding with the plan despite strong objections from environmentalists.

Sutiyoso said on Monday that the amount had been calculated from the value of some 30 percent of the total 2,700 hectares of reclaimed land along the northern coast of the city. The remaining 70 percent would be for investors.

The profit does not include taxes and other income gained through administrative fees that would be charged once the project is completed. The reclamation would be done over a 30- year period.

Houses, hotels, condominiums, an industrial zone, business centers, malls, office blocks and recreational areas will be built on the reclaimed land, as well as jetties.

"We need the money to revitalize the environment in many parts of the northern coast," Sutiyoso announced at City Hall on Monday.

But environmentalists doubt that the city administration will pay serious attention to the environment given that economic considerations invariably outweigh concerns of environmental damage.

The chairman of the Environmental Task Force (ETF), Ahmad Syafruddin, said that the social and environmental costs of the project had not been taken into consideration.

State Minister of the Environment Nabiel Makarim issued a decree on Feb. 19 rejecting the project after considering a report issued by the Central Committee, which was tasked to assess the project's environmental impact analysis (Amdal).

According to the committee, reclamation of the northern coast would cause an increase in sea level of up to 12 centimeters, fishermen would lose their jobs, the sea ecosystem would be damaged and pollution around Kepulauan Seribu regency would increase.

Speaking about the result of his meeting with economics ministers on the reclamation plan last Friday, Sutiyoso said that the environmental minister's rejection of the project had caused the economics ministers to hesitate in approving the project.

He stated that the environmental minister's decree on the reclamation should be discussed thoroughly in a public debate involving larger elements of society, particularly those who care about environmental issues.