Councilors demand review of mega-projects

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)