Developer could be penalized

JAKARTA (JP): The city administration has threatened to fine PT Inti Utama Dharma Real Estate, developer of the Cipinang Indah housing complex in East Jakarta, if its project is in violation of the law.

Assistant for City Secretary Prawoto Danoemihardjo told reporters yesterday that under the existing regulation, any developer that fails to build social facilities are subject to fines.

"The administration will not hesitate to punish the developer (PT Into Utama) if our investigation finds it in violation of the regulation," he said.

Prawoto refused to mention the amount which the company may be fined.

Prawoto's comment was prompted by a city councilor's remarks made on Tuesday about the controversial project.

Councilor of the City Council's Commission D, which oversees development affairs, Saud Rachman said that the developer has misused a 3,000 square-meter plot of land which was initially earmarked for a primary school.

The councilor urged the city administration to take firm action against the developer because it has used the land to build 11 luxurious houses.

The city administration has granted the developer a permit to appropriate about 116,466 square-meters of land in the Cipinang Muara subdistrict of East Jakarta.

The city administration requires all housing developers to build various social and public facilities, such as parks, schools (kindergarten and primary schools) and gutters.

In 1993, the developer signed an agreement with Mas Sunaryono, the then East Jakarta mayor, to build all the facilities on 47,839 square-meters of land, worth Rp 16.37 billion.

However, Saud said, the developer has only built facilities important to the complex, such as roads, gutters and water ducts, but failed to build other social facilities, such as a school.

Prawoto said that the administration will make the developer demolish houses which have been built but not yet sold on the disputed location. (yns)