Indonesian Political, Business & Finance News

Civil Coalition Calls for Review of Hotel Sultan Execution

| | Source: MEDIA_INDONESIA Translated from Indonesian | Legal
Civil Coalition Calls for Review of Hotel Sultan Execution
Image: MEDIA_INDONESIA

The Civil Coalition for the Defence of Indigenous Entrepreneurs staged a protest outside the Central Jakarta District Court on Monday (15/6) regarding the planned execution of Hotel Sultan, scheduled for 18 June 2026. The action reportedly involved students, Hotel Sultan employees, labourers, and other community elements.

Through this activity, the coalition stated it wished to convey its views on a number of legal aspects, worker protection, and business continuity that it believes could be impacted if the execution proceeds.

Coalition spokesperson Al Hams Qamarallah said his party hopes the government and stakeholders will consider various legal aspects as well as socio-economic impacts before the execution is carried out. “We hope the entire process proceeds by upholding the principles of justice, legal certainty, and protection of the rights of all affected parties,” Al Hams said in a written statement.

According to him, several issues still require attention, including the implementation of an immediately enforceable ruling, the obligation to place a guarantee, the position of the holder of the Right to Build (HGB), and the protection of interested parties. He assessed that the dispute underlying the case relates to land status. However, they highlighted the potential wider impact on the building and business activities that have been run by PT Indobuildco as the manager of Hotel Sultan.

He stated that Hotel Sultan’s operations are not only related to company assets but also concern the economic sustainability of various parties, from employees, daily workers, tenants, vendors, suppliers, event organisers, to other business partners.

In his statement, he conveyed six demands. First, he requested that the execution plan be reviewed by considering applicable legal provisions, including the obligation to place a guarantee as stipulated in Supreme Court Circular Letters SEMA No. 3/2000 and SEMA No. 4/2001 concerning the implementation of immediately enforceable rulings. Additionally, he encouraged a resolution through dialogue between PT Indobuildco and the State Secretariat Ministry or to wait until all legal processes have attained certainty.

Second, they asked the government to pay attention to the rights of HGB holders in accordance with applicable land regulations. According to the coalition, HGB holders have a legal standing that needs to be considered in the dispute resolution process, including regarding the opportunity to apply for an extension or renewal of rights.

Third, the coalition requested protection for workers, tenants, vendors, suppliers, business actors, and other third parties who could potentially be affected if the execution is carried out. They consider this aspect of protection important because it concerns the continuity of business and livelihoods of many parties.

Fourth, the coalition pushed for dispute resolution through dialogue and negotiation to achieve a solution acceptable to all parties. According to them, a dialogue approach can provide space to find a way out that considers legal aspects as well as social and economic impacts.

Fifth, the coalition asked the government to pay attention to the business continuity of PT Indobuildco, which has managed Hotel Sultan for decades. They believe the company’s contribution to investment, job creation, and economic activity should be a consideration in resolving the case.

Meanwhile, the sixth demand relates to the importance of maintaining social and economic stability by considering the various impacts that may arise from the execution. The coalition believes a transparent resolution that considers a sense of justice will help maintain public trust in the law enforcement process. “We encourage that space for dialogue remains open so that a fair resolution for all parties can be achieved,” he concluded.

Previously, the Central Jakarta District Court rejected PT Indobuildco’s lawsuit against the Minister of State Secretary casu quo PPKGBK regarding the management of Hotel Sultan. The ruling was delivered on Friday, 28 November 2025, via e-court. In civil case Number 208/Pdt.G/2025/PN.Jkt.Pst., the court concluded that the state (through Land Management Right No. 1/Gelora) is the legal owner. Consequently, the Hotel Sultan’s Right to Build has been null and void by law since 2023, the state’s actions are lawful, and Indobuildco is obliged to vacate the entire Hotel Sultan area, including land and buildings. The ruling is uitvoerbaar bij voorraad, meaning it can be executed immediately.

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