City threatens to seize Hotel Mulia

The Jakarta Post, Jakarta

The city administration told private developer PT Jakarta Country Club, which owns the Hotel Mulia Senayan in Central Jakarta, on Friday to pay Rp 15 billion (more than US$1.5 million) in fines for violating its building permit or face the possible seizure of the hotel.

"I hope that they pay the fine. If they refuse, the seizure could take place," Governor Sutiyoso told reporters at City Hall.

The threat was made after the Supreme Court ruled the developer had violated its building permit by constructing the 40-story hotel, while the permit allowed for a maximum of 16 stories.

The legal battle began in 1998 when the administration sued the developer at the Central Jakarta District Court for violating its building permit. The administration demanded the company pay a Rp 15 billion fine.

The administration lost the suit, appealed the decision to the Jakarta High Court, and again lost. The decision, however, was eventually overturned by the Supreme Court, which ruled in favor of the administration.

City spokesman Muhayat said the administration approached the Mulia's owners after receiving the Supreme Court's decision, dated Dec. 7 last year, but the firm continued to refuse to pay the fine.

The developer, which is partly owned by businessman Djoko Tjandra, did pay a Rp 250 million installment of the fine, but has not submitted the remaining payment.

Muhayat said the Central Jakarta District Court issued a first warning to the company last month, ordering the hotel developer to pay the remaining fine within eight days. But the warning was ignored. A second warning was issued on Wednesday.

"We will demand a seizure (of the hotel) if the developer still refuses to pay the fine by the third warning," Muhayat said on Friday.

The hotel developer was a subsidiary of the 1997 SEA Games Consortium, chaired by former president Soeharto's son Bambang Trihatmodjo.

The $240 million hotel was opened in September 1997 by Soeharto. The facility was used to house athletes competing in the 19th Southeast Asian Games held in October of that year.

The hotel's public relations manager, Ratna Sjamsiar Idris, would not comment on the matter, saying it was the concern of the hotel's owner.

"I can only comment on the hotel's activities," Ratna told The Jakarta Post on Friday.

The developer's phone number is not listed, and executives of the company could not be reached for comment.