Indonesian Political, Business & Finance News

Compensation undecided for lights

| Source: JP

Compensation undecided for lights

Damar Harsanto, Jakarta

Although the Rp 15 billion (US$1.6 million) laser show project at
the National Monument (Monas) Park in Central Jakarta has already
begun, the city administration has yet to complete its
negotiation with the project's sponsor over the compensation.

"We are still negotiating with the company on some locations
in the city in exchange to the project," said assistant to the
city secretary for development affairs IGKG Suena recently.

He argued that PT Ava Banindo -- the subcontractor of PT
Indofood Sukses Makmur instant noodle giant in the laser light
project -- did not give any timeframe for the conclusion of the
negotiation.

According to Suena, the administration has offered 12
locations to the company, including major thoroughfares such as
Jl. Thamrin and Jl. Sudirman.

However, he said the company proposed a renewal of its
videotronic billboard near Hotel Indonesia traffic circle.

"The company's rental of the spot will expire next year.
That's why it is requesting the renewal of the videotronic
advertising as compensation."

Suena said the administration would look into the possibility
of extending the permit, but it would require the company to
modify the advertisement so that it was in harmony with other
ornaments in the vicinity.

City councillors have repeatedly criticized the administration
for bartering the funding of city projects in exchange for
strategic sites for outdoor advertising, saying that similar
deals in the past were not transparent and marred by corruption
and collusion.

In the past, the administration has carried out many
beautification projects, including the Rp 14 billion renovation
of the Hotel Indonesia traffic circle fountain, the Rp 4 billion
Arjuna Wijaya statue renovation project and the Rp 3.5 billion
General Soedirman statue. None of these deals were made through a
tender.

Despite criticism, the administration has continued to pursue
such deals, the latest being the laser show project at Monas
Park, which is part of the Jakarta's 477th anniversary
celebration.

The new lighting, which alters the color of Monas' tower and
displays images on the tower's sides, can be seen in the evening
on Wednesdays, Fridays and Saturdays.

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