Indonesian Political, Business & Finance News

Developers denied permit proposal for some violations

| Source: JP

Developers denied permit proposal for some violations

JP/3/ESTATE/0/12 MB

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.

Support

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)

View JSON | Print