Firm apologizes over land deal
Firm apologizes over land deal
JAKARTA (JP): An executive of PT Catur Swasakti Utama, a
subsidiary of the widely diversified Bakrie group, admitted
yesterday that his firm had failed to meet requirements in a land
exchange deal with the city.
Company director Max B. Lani told city councilors that the
company, which developed Taman Rasuna Apartments in Kuningan,
South Jakarta, had experienced problems due to the prolonged
economic crisis and a management reshuffle last year.
"I apologize for what we have done. We are facing many
difficulties fulfilling the deal due to a management reshuffle
last December and the current crisis," he told members of
Commission E for social welfare at the firm's project site.
Under the deal, the company was to develop the apartment
project on a 49-hectare plot of land in 1994 after removing two
elementary school buildings and a nursing home.
The company was then required to provide the city with a new
5,322-square-meter plot of land, build another nursing home on a
10,000-square-meter plot and build the two elementary school
buildings on a 2,128-square-meter plot in Pasar Rebo, East
Jakarta.
The apartment project consists of two complexes with a total
of 27 towers. Prices range from Rp 125 million to Rp 900 million
for each unit. The first complex of 16 towers and 3,850 units was
completed early last year.
Max promised that the schools and the nursing home would be
built next October as soon as the company finished processing the
required documents.
The councilors and the company's representatives also agreed
to arrange a formal meeting to further discuss the matter.
Councilor Agus Waluyo, however, told reporters that he could
not accept the company's explanation.
"The reasons are illogical because most of the apartments had
already been sold before the crisis and the management reshuffle
was their internal problem and had no relation to the deal at
all," he said.
However, Agus said he would not pursue the matter too far
since the company had promised to build the schools and the
nursing home.
Agus said that if the company failed to meet the requirement
again, the council would ask the city administration to file a
lawsuit. (ind)