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)