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. (31)