Councilors nix land exchange proposal

JAKARTA (JP): City councilors rejected on Friday a land exchange plan between the city administration and privately-owned retail firm PT Pasaraya Toserba Jaya.

A. Chudlary Syafi'i Hazami of the United Development Party (PPP) faction said it was not worthwhile to exchange two separate plots owned by the firm in Petukangan Selatan and Ciganjur subdistricts, South Jakarta, with the city's land in Rawa Barat, Kebayoran Baru.

"We told the firm to name other land if they wanted to continue with the land exchange," said Chudlary, a member of Commission B on economic affairs.

He said that ownership of the 4,087-square-meter plot of land in Petukangan Selatan was disputed by former councilor Husein Sani, who claimed the land belonged to him.

The 6,000-square-meter tract in Ciganjur would need to be reclaimed before it could be used for construction.

"The land in Ciganjur is a swamp. And the reclamation project will cost billions of rupiah," Chudlary said.

Many believe that the firm, owned by former minister and businessman Abdul Latief, will build a business center, with two stories or more, in the exclusive location in South Jakarta.

Ali Amri Husen, also of the PPP faction, said the Rawa Barat land was worth more than Rp 6 billion (US$750,000), while combined value of the Petukangan Selatan and Ciganjur plots was Rp 4 billion.

Ali recommended that the city administration cancel the plan, saying that it would only bring losses to the city.

Chudlary said developing the 3,880-square-meter plot in Rawa Barat into a business center would contravene the city plan to keep it as a green and open area.

"We will reject the plan if the firm wants to build more than a two-story building,' he said.

Deputy Governor for Administrative Affairs Abdul Kahfi also said on Friday that the city administration would cancel the plan if the legal status of the substitute plots remained unclear.

Tentative calculations found the city would obtain about Rp 167 million in return from the firm's proposal to build new school.

Earlier on Thursday, Deputy Governor for Development Affairs Budihardjo Sukmadi said he would question all officials involved in the matter before deciding whether to terminate the land- exchange deal. The Rawa Barat plot is currently occupied by a state elementary school.

Another councilor, Azwar Abas, asked what would be done about the 120 students at the school on the Rawa Barat.

Azwar said the retail firm's executives and city officials had not addressed the fate of the students.

"The students might move to another school or they could have to wait for a new building on the substitute land," Azwar said.

ALatieF corporate communications manager Rae Sita Supit could not be reached for comment. (jun)