Developer, residents agree

Developer, residents agree

JAKARTA (JP): Residents involved in a land appropriation
dispute in the Kebun Kosong and Gunung Sahari subdistricts of
Central Jakarta agreed yesterday to move into a low-cost
apartment block to be built in their area, according to a city
councillor.

H.M. Aman, chairman of the City Council's Commission A, which
is responsible for government affairs, said that the agreement
had been reached in a meeting between representatives of the
Kemayoran Area Development Board and residents' representatives.

The compensation rate offered by the developer had been
rejected by the residents who claimed that it is too small. In
the wake of yesterday's agreement, further discussions regarding
the level of compensation to be granted to the residents has been
postponed to a later date, Aman told The Jakarta Post by
telephone.

The decision to hold the meeting with the residents was made
in response to a request from the councillors because the board
had so far held negotiations only with chiefs of the
subdistricts. Those discussions had been concerned with evicting
the residents. According to the existing regulations, residents
must be consulted in the setting of compensation rates in cases
of land appropriation.

Yesterday's meeting was attended by 50 residents and Hindro T.
Soemardjan, a representative of the Kemayoran board. The meeting
was observed by Aman and H.M. Ade Surapriatna, a Commission A
member.

Aman said that both sides had agreed that the compensation
eventually paid to the residents could be used as a downpayment
on the purchase of the housing units.

During the meeting Hindro said that, instead of paying Rp
300,000 (US$136.36) per month in installments on the apartments,
the residents will be allowed to pay Rp 72,000. The balance is to
covered by a government subsidy.

"I really hope that everything the Kemayoran Area Development
Board said to the residents during the dialog will materialize
and is not just promises," Ade said.

"They have to keep their promises to the residents, otherwise
the residents will sue the board's representatives," Ade added.

Recently, residents of the subdistricts filed a complaint with
the city council alleging unfair compensation. They demanded that
the board consult with the residents in setting the rate.

The board said that the residents would receive compensation
in the amount of 25 percent of the market price of the land, on
the basis that the land they were occupying belongs to the
government. That would have meant that the residents would have
received between Rp 300,000 (US$ 136.36) and Rp 700,000 per
square meter of land.

The offer, however, was turned down by the residents who
insisted that the compensation paid be based on market prices.
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