Indonesian Political, Business & Finance News

Developer agrees to hold talks over compensation

Developer agrees to hold talks over compensation

JAKARTA (JP): The Kemayoran Area Development Board agreed yesterday to open a dialog with residents of the Kebon Kosong and Gunung Sahari sub-districts, Central Jakarta, to settle a dispute over land compensation.

Hindro T. Soemardjan, one of the board's executives, told reporters that he will open the dialog with the residents to set the compensation rate.

"I will hold a meeting with the residents," Hindro said, after a meeting yesterday with City Council's Commission A, which is in charge of government affairs.

The decision to a hold meeting with the residents was made in response to requests from councilors because the board has so far only held negotiations with chiefs of the local district and sub- districts.

"The dialog with sub-districts and district chiefs did not represent the residents at all," Romulus Sihombing, one of the councilors, said, adding that according to existing regulations, residents must be involved in the setting of compensation rates for land appropriation.

M. Aman, chairman of Commission A, said that sometimes people just don't care about their ownership status but because they have been living in the area for years they feel that they have the right to get higher compensation.

Recently, about seven representatives of the subdistricts, who claimed to represent about 5,000 residents, filed a complaint with City Council over an unjust compensation. They demanded that the board include the residents in setting the rate.

Several other residents of the two subdistricts also went to City Council yesterday to meet with Commission A members, but canceled their plan because the commission was already holding a meeting with the board.

Leader of the delegation, Rahardjo Darsoprayitno, denied an allegation from the chairman of the Kemayoran Area Development Board that the residents were not giving all the facts, of the land dispute, to City Council.

Rahardjo, in turn, accused the board of telling lies. "The board said that it respects the residents and has taken humane action, but in reality it only held two meetings. The first was to tell us about the plan to appropriate our land and the second to tell us the amount of the compensation," he said.

The board has never held negotiations with residents, to determine the amount of the compensation, he said.

Last week Hindro accused the residents of not giving all the facts, and said that none of the residents objected to the compensation rate. He said residents will receive compensation in the amount of 25 percent of the standard price of land, on the grounds that the land they are occupying belongs to the government.

Hindro said that the residents will receive from Rp 300,000 (US$136.36) to Rp 700,000 per square-meter for the land.

The offer, however, was turned down by the residents because they insisted that the compensation be set in line with standard prices. (yns)

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