Developers to transform Pademangan slums

Developers to transform Pademangan slums

JAKARTA (JP): The city will cooperate with a state-owned
development board to convert a slum area in Pademangan, North
Jakarta, into a business, shopping and housing complex, an
official said.

The 190-hectare project is expected to be completed in five
years, but the starting date has not yet been set.

Prawoto S. Danoemihardjo, assistant to the secretary of
development affairs, said yesterday that as well as the Kemayoran
New Township Authority, other developers were invited to
participate.

The authority answers to the State Secretariat and is in
charge of converting the area around the former Kemayoran airport
into a commercial and residential area.

In response to questions about why the city agreed to work
with the authority while the Kemayoran project has continuing
problems with land disputes, Prawoto said if the authority lacked
funds, for land compensation, it could work with private
developers.

Meanwhile Deputy Governor for Economic and Development
Affairs, Tb. M. Rais declined to offer reasons for involving the
authority in the Pademangan project.

The Kemayoran project began in 1990 and has affected 5,000
families. Many land disputes are still dragging on although
several have been settled.

Prawoto said cooperation between the authority and private
developers would not affect the position of the city-owned
developer company PD Sarana Jaya, appointed in charge of the
project.

Prawoto said the Pademangan project was in line with the
city's efforts to renovate Jakarta.

"The project is still waiting for the Governor's written
approval," Prawoto said.

In the cooperation Sarana Jaya would work with developers in
land appropriation and form a joint venture to develop the
project, he said.

Prawoto said in the long term, the project was expected to
complement the Waterfront City Project in North Jakarta.

Deputy Rais said the city was still taking an inventory of
residents and property ownership in the area.

"The process is expected to finish this year," Rais said.

He said the Pademangan complex would integrate middle and
working class accommodation so residents could conveniently get
to work and shops.

"The residents do not have to move out of the area because of
the project, they can resettle in low-cost apartments," Rais
said.

Most buildings in the area are semi-permanent, and prone to
flooding and sea water intrusion. The land is state-owned, Rais
said.

Sarana Jaya estimated the company would spend Rp 1.25 trillion
(US$530 billion) on the land.

The management said the planned housing complex in Pademangan
in the eastern and western parts of the slum area, would
accommodate 18,515 families on more than 1.8 million square
meters.

A shopping center would be built on 1,059,058 square meters.
"The shopping center will not just cater to residents in
Pademangan, but also from the nearby neighborhoods," Prawoto
said.

Office buildings and hotels are planned on 5.5 million square
meters.

Sarana Jaya is considered to have successfully developed
several housing estates here with the "estate management"
concept. This means involving private developers with different
areas of expertise. (ste)