Developers denied permit proposal for some violations

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Developers denied permit proposal for some violations

JAKARTA (JP): East Jakarta Mayor Sudarsono has temporarily suspended various permit proposals from 11 real estate developers in the mayoralty due to violations of a number of regulations.

The developers are being prevented from acquiring land certificates, building permits or any other documentation.

The mayor's decree dated April 18 states that the violations vary from not fulfilling the requirement to provide public facilities to exchanging permits on land use (SIPPT).

The 11 developers are PT Bangun Indah Sakti, PT Aneka Elok, PT Inti Utama Dharma, PT Asmawi Agung Corporation, PT Central Bumi Indah, PT Gubah Nusa Semesta, PT Altan Karsa Prisma, PT Bina Karnada, PT Nusa Persada and PT Billy & Moon and the state-owned Perumnas at Perumahan Malaka Asri.

Sources at the City Hall said yesterday public facilities at the first five estates are worth some Rp 214 billion (US$102 million). According to the city regulations, developers have to set aside 20 percent of their acreage for public facilities.

The company's specific violations read like a litany of greed.

PT Utama Dharma promised to provide public schools but did not, while PT Asmawi Agung originally provided a plot for public facilities, but later turned it into a shopping arcade.

PT Aneka Elok had proposed to build simple houses for workers, but ended up creating a luxury housing complex.

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PT Central Bumi Indah obtained two land use permits illegally and PT Nusa Persada also illegally bought a permit for its Malaka Country estate from Perumnas. Land use permits are by law non- transferable.

State-owned Perumnas' violation is that it has built 242 houses without building permits. No details were given on the violations of the other developers.

The City Council yesterday voiced their support for the mayor's stand.

Sjarifuddin Siregar Pahu of the United Development Party praised the action as courageous amid growing public speculation on the collusion between bureaucrats and entrepreneurs.

"I totally support the mayor's action... they should be given tighter punishments. If necessary, we bring them to court," he told reporters.

He suggested that those developers might have committed manipulation in order to gain the personal profits.

Meanwhile Arie Putra Bintana of Golkar also supported the mayor's move, saying if necessary the mayoralty will get tough with naughty developers.

People who want to get houses from real estate developers usually have to make a 10 percent down-payment before construction begins. (11)