Former governors to be questioned over alleged Kemayoran land scam
JAKARTA (JP): The City Council will question two former governors over the change of status of 44 hectares of land at the site of the former Kemayoran airport, Central Jakarta, from the city administration's control to that of a private company.
Councillor Ugiek Sugihardjo of the Indonesian Democratic Party of Struggle said on Thursday that former governors Wijogo Atmodarminto and Surjadi Soedirdja would be questioned on the status of the land.
"All the parties involved in the case will be summoned. Wijogo and Surjadi will be summoned," said Ugiek, a member of the council's Commission B for economic affairs.
He said the commission had sent a letter to the council's leaders, suggesting the establishment of a special team to investigate the case.
According to Ugiek, the land was formerly owned by the state Kemayoran Management Body (BPL) before it was bought by city- owned Pekan Raya Jakarta (PRJ) foundation.
In 1993, Wijogo signed a decree to transfer the land from the foundation to city joint-venture firm PT Jakarta International Trade Fair.
Following the sale of the land, the PRJ foundation was then required to pay an annual rental fee of Rp 10 billion to PT JITF for the one-month annual Jakarta Fair.
"It's strange that PRJ should pay a fee to JITF. Thus far, we only know that JITF is the organizer of the Jakarta Fair," Ugiek said.
The PRJ foundation, nevertheless, managed to book profits, since it conducted the fair for the first time in 1969 in the National Monument park -- until it was moved to the Kemayoran area in 1993.
JITF, however, reportedly continued to suffer losses. Because of its mounting debts, then governor Surjadi allowed the company to reschedule its debt in 1997.
During a hearing with commission B on Tuesday, JITF president Edward Soerjadjaja revealed the firm's plan to sell 10 hectares of the land in an effort to cover its debt to a Japanese consortium of Rp 1.5 trillion.
"The debt was caused by depreciation of the rupiah against the U.S. dollar during the economic crisis," Edward said.
But the council opposed the sale plan since JITF planned to sell the land to Edward's firm PT Griya Nusa Pratama, which was also a shareholder of JITF.
"It seems like insider trading," Ugiek said.
JITF is 42.5 percent owned by a Japanese consortium, 52.5 percent by PT Jaya Nusa Pradana and 5 percent owned by BPL Kemayoran.
PT Jaya Nusa Pradana is 75 percent owned by PT Griya Nusa Pratama and 25 percent owned by the PRJ foundation.
Wijogo was also former president commissioner of both PT Jaya Nusa Pradana and JITF.
Separately, city administration spokesman Muhayat said on Thursday that the 44-hectare site was never recorded as one of the administration's assets.
"Possibly, as the land was owned by a city-owned firm, it was not registered as one of the city's assets. If so, it was owned by the firm, and it could sell the land without the council's approval," he said.
He stated that the city inspectorate and Jakarta prosecutor's office had investigated the case during Surjadi's term, but they dropped the investigation. (jun)