City to fine Hotel Mulia if second tower erected

City to fine Hotel Mulia if second tower erected

JAKARTA (JP): Construction work on the Hotel Mulia Senayan's
second tower is likely to be delayed due to the current monetary
crisis, a hotel representative said yesterday.

Speaking on behalf of the hotel's management, Enggartiasto
Lukita, a member of 19th SEA Games consortium, however, did not
clarify whether or not the postponement was due to a large fine
to be imposed by the city administration should construction
begin.

"Looking at the current monetary situation, I think we should
reschedule the construction," said Enggartiasto.

State Minister of Youth Affairs and Sports Hayono Isman said
yesterday the city administration would fine the hotel management
Rp 98 billion (US$28.18 million) if the latter continued with its
plan to build a second tower.

The ultimatum from the city was revealed to the minister
during an informal meeting with city officials, including
Governor Sutiyoso and Enggartiasto, earlier yesterday.

"I heard from the governor's staff that the first tower would
only incur a small fine. But the second would face a larger
amount," said the minister, giving no further explanation.

Based on the plans for Mulia Senayan Hotel -- jointly signed
by the Jakarta governor and the secretary/state minister some
time ago -- the first tower was permitted to have only 16
stories.

But the management finally developed the project into a 40-
story hotel, significantly deviating from the agreed-upon plan
and subsequently violating its high-rise building permit.

Enggartiasto boastfully said: "There's no problem with the
first tower, which now becomes Hotel Mulia. It's not fined by the
administration."

He said the hotel management would be fined only for the
second tower.

The building permits for the second project would be issued by
the administration shortly after the management was able to pay
the fine, he said.

The four-hectare lot for the towers located next to the
Senayan shooting range was earmarked for the Jakarta Country Club
from the Gelora Senayan Management Board.

The country club later joined the Mulia Group to build the
hotel as an accommodation for some 1,800 athletes participating
in the 19th SEA Games.

Minister Hayono said: "I think the building permit for the
second project could be completed in less than one month as long
as the hotel management could meet all the requirements issued by
the administration."

Hayono said the underground parking lot of the hotel, which
has occupied some of the land on the shooting range, would give
its parking fee earnings to the Indonesian Shooting Association.

"The association and the hotel's management have agreed that
100 percent of the parking fees be given to the association," he
said. (yan)