Former governors to be questioned over alleged Kemayoran land scam
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)