Danantara Sets Aside $26 Million to Revive 12 LRT City Projects
Danantara Sets Aside $26 Million to Revive 12 LRT City Projects
Jakarta. Sovereign wealth fund Danantara Indonesia has allocated Rp456 billion ($25.8 million) to help complete 12 LRT City residential projects, but thousands of buyers who have yet to receive their homes still have no refund option as the government reviews the status of each development.
Aminuddin Ma’ruf, deputy head of the State-Owned Enterprises Agency (BP BUMN), said the funds are being directed toward continuing projects developed by Adhi Commuter Properti (ADCP), a subsidiary of state-owned construction company Adhi Karya (ADHI). LRT City developments include projects in areas such as Bekasi, Cibubur, Sentul, Jatibening, Ciracas and Tebet.
“We don’t have any options for that [funds return/refund] yet. Once again, we are waiting for the results of the inventory,” Aminuddin said in Jakarta on Tuesday, as quoted by Antara.
The government will review all 12 LRT City locations to determine the status and viability of each project and assess their sales performance. The site reviews are scheduled to take place this week and next week.
“We do indeed have plans to build all 12 units at those 12 locations. There are also some [among the 12 projects] that haven’t been built at all,” Aminuddin said.
The issue has drawn attention because around 5,400 LRT City units have been sold, but only about 3,000 have been handed over to buyers, leaving roughly 2,400 units still undelivered across several projects.
Danantara had set aside Rp456 billion as of the end of August to help address problems surrounding the LRT City projects. The use of the funds is still being discussed with Adhi Karya.
Dony Oskaria, chief operating officer of Danantara’s investment management arm, said the agency would select a resolution plan that could provide consumers with certainty over their rights.
“They’re currently presenting their case, and this is just the first presentation to me. Yes, so we’ll choose the fastest option. Of course, there will be unit transfers and so on,” Dony said after a meeting at the House of Representatives complex in Senayan, Jakarta, on Aug. 31.
He said further discussions with Adhi Karya would take place after the initial presentation. Once a resolution plan is agreed, Danantara will process financial assistance for Adhi Karya.
On Tuesday, BP BUMN met with the Ministry of Housing and Settlement Areas, Adhi Karya and LRT City consumer representatives to discuss follow-up measures.
Aminuddin said BP BUMN would oversee the process based on an agreed timeline, with the inventory of affected consumers targeted for completion by early October.
The inventory is expected to determine which projects will continue and help establish how the allocated funds will be used to address the outstanding obligations to buyers.
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