Developer vows to make Ancol project green
JAKARTA (JP): A developer has promised that its 500-hectare reclamation project in Ancol, North Jakarta, will not cause environmental damage and flooding in surrounding areas.
Arissetyanto Nugroho, president of PT Manggala Krida Yudha (MKY), told a hearing of the House of Representatives' Commission X on Tuesday night that his company had taken measures to ensure the sustainability of the coastal environment.
"This project has been designed to prevent flooding in Ancol Baru or the areas surrounding it," he told the commission overseeing environmental issues.
The company plans to set up an integrated sanitation system to ensure garbage and waste do not spill into the sea, he added.
Markus Wauran, who headed the commission at the hearing, said he hoped the project would be realized as promised to become a model for other reclamation works planned in North Jakarta.
Construction on Ancol Baru, the first of several reclamation projects to be carried out in North Jakarta, had earlier been delayed by controversy over possible environmental ramifications, with some experts warning that it could lead to worse flooding in Jakarta.
MKY, which is controlled by President Soeharto's youngest daughter Siti Hutami Endang Adiningsih, is developing the area in cooperation with PT Pelabuhan Indonesia II (Pelindo II), the state-owned port management company. MKY holds 75 percent of the equity in the project, with the remainder held by Pelindo II.
The project includes providing reclaimed land for the expansion of the Tanjung Priok port, and building supporting infrastructure and residential, office and shopping areas.
In May, MKY awarded Hyundai Engineering and Construction Co. Ltd of South Korea a $150 million contract for the project.
Arissetyanto said on Tuesday the Korean contractor is expected to reclaim at least 240 hectares by 1999.
He said reclamation was better than the common practice of opening up new land through the eviction of local people, which often created social problems.
The company plans to set up a vocational training center for local people to ensure a pool of trained workers to fill jobs once the project is completed.
Tuesday's hearing was intended to gather material for the House as it deliberates the bill on environment.
The license for the project was issued jointly by the Jakarta municipality, the Ministry of Transportation and the Ministry of Finance in 1994-95. In addition to environmental concerns, its realization was delayed by funding issues.
The project received a major boost with the enactment of Presidential Decree No. 52 in 1995 and Government Regulation No. 70 last year, both dealing with reclamation in North Jakarta.
The developer announced earlier its agreements with state electricity company PLN and the city administration's drinking water company, PDAM, to provide their services.
It said it was currently negotiating with state telephone company PT Telkom for telephone services and the Ministry of Public Works for construction of a toll road. (07)