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)