Developers get ultimatum

TANGERANG (JP): Tangerang Regent Agus Djunara has warned five major real estate developers here to pay overdue property taxes totaling Rp 5.8 billion or face confiscation of their land.

Djunaidi Abham of the Tangerang property tax office said Rp 2.4 billion of the total in arrears was owed by PT Bumi Serpong Damai, developer of the BSD housing complex, Rp 1.2 billion by PT Jaya Real Estate (Bintaro Jaya housing complex), Rp 1 billion by PT Lippo Karawaci (Lippo Karawaci housing complex), Rp 700 million by PT Alpha Goldland (Alam Sutera housing complex) and Rp 500 million by PT Gading Serpong (Citra Raya housing complex).

"The developers have a deadline of March 30 to settle the payment. If they fail to abide by the deadline, the regency will take stern action against them," Djunaidi said on Friday.

He said his office would first send notification letters to the companies warning them to meet their obligations. Failure to do so could result in the confiscation of their land.

"Just wait and see. The developers agreed to pay the tax arrears in an earlier meeting with the regent," he said.

Meanwhile, BSD's spokesman Doni Rahajoe disputed the sum announced by the regency.

"It's not that big. We will fulfill the payment of our property taxes as usual," Doni said on Sunday.

He would not disclose the actual amount of the developer's taxes, but said Rp 2.4 billion in taxes was owed by house owners in the complex.

Although about 14,000 houses at the site have been sold, many were left vacant by their owners, he added.

"We have tried hard to trace the owners to remind them they have to pay taxes," he said. (41/jun)