Councilors demand review of mega-projects
JAKARTA (JP): City councilors urged the city administration yesterday to quickly reconsider its massive projects, most of which have ground to a halt.
They said the administration should look into whether the investors and developers of projects such as the triple-tier transit system, the Jakarta Bay reclamation project and the subway project could continue despite the crisis.
Fatommy Asaari, head of the Golkar faction, said investor and developer commitment was very important for the quick completion of the projects.
"They postponed construction work as soon as the monetary crisis hit the country. But we can't wait for too long," he told The Jakarta Post yesterday.
Ali Wongso Sinaga, head of Commission D for development, told the Post that project contracts must be thoroughly reassessed with the crisis in mind.
"If the contracts produce more profit for the developers or investors, then they (contracts) must be revised because the administration is actually the one which owns the assets," he said.
Ali said the administration should find new investors with strong financial and technical backgrounds to manage the projects if the current companies backed out.
"But first we must allow the current developers to appraise us of the situation," he added.
Fatommy shared Ali's view, saying that it was important for the administration to quickly complete its projects since they were very important for Jakarta's future.
"Foreign investors and developers should be welcomed to participate in the projects," he said.
The triple-tier transit system project, which is to connect Bintaro in South Jakarta to downtown Kota, is managed by PT Citramoda Margakencana Persada, a joint-venture company of PT Citra Lamtorogung Persada, owned by former president Soeharto's eldest daughter Siti Hardijanti Rukmana, state railway company Perumka and the state-owned highway corporation, PT Jasa Marga.
Construction for the project, which is not included in the city's 1985/2010 revised urban spatial plan, started in March with the opening of some work sites in Bintaro and the controversial cutting down of some trees along Jl. Bendi Raya in Tanah Kusir, also in South Jakarta. Construction was postponed in April due to financial problems.
The Jakarta Bay reclamation project issues the rights to a total of 2,700 hectares to several companies, including PT Manggala Krida Yudha, owned by Soeharto's youngest daughter Siti Hutami Endang Adiningsih.
Open bid
Ali said the project, which was backed by Presidential Decree No. 52 issued in 1995, was not awarded through an open bid. Only few of the earmarked locations have been reclaimed, he added.
The US$1.5 billion subway project to connect Blok M in South Jakarta and the downtown Kota area is handled by a consortium in which Soeharto's second son Bambang Trihatmodjo's company is involved.
Fatommy said the city and the companies in the consortium had welcomed Bambang's involvement in the project, which was originally the administration's idea.
"They hoped that Bambang's involvement could help them get approval from the central government. But it turned out that the Presidential Decree was not issued specifically to support the subway but rather to cover Hardijanti's triple-tier project," he said.
Fatommy said the administration should not review the projects just because they were handled by companies owned by the family of former president Soeharto.
"Let's not look into who were behind the projects. I think it would be better to see the importance of the projects for the public. But, if there is proof that the companies are using the projects to make huge profits, then we have to take strict action," he said. (cst)