Developer vows to make Ancol project green

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)