Thu, 11 Apr 2002

Foundation plans to open casino in Seribu Islands

Ahmad Junaidi, The Jakarta Post, Puncak, West Java

Jakarta's Seribu Islands regency may eventually become a haven for gamblers as a number of investors have proposed to the regency that they be allowed to open casinos.

Seribu Islands Regent Abdul Kadir revealed here on Wednesday that one particular investor had even submitted a written proposal to his office.

"Yes, several investors have expressed their plans verbally to me. But only one investor has officially proposed managing a casino on one of the islands," Kadir told reporters on the sidelines of a Jakarta Legislative Council meeting here.

He refused to disclose the investor, and only said that it was a foundation based in Jakarta.

The foundation, he said, had put all the details in its proposal such as envisioned revenue-sharing with the regency and the city, and even the requirements for prospective gamblers.

The gamblers, according to the proposal, would be required to deposit at least Rp 10 million (US$1,000) and should have a membership card so as to avoid "ordinary" people entering the casino.

"I have informed local residents that in the near future there will be (legalized) gambling on the islands. And they have no objection," he claimed.

He revealed that casinos would be built on one or two islands out of 45 islands currently owned by private companies and individuals.

Nine of the 45 islands are currently used as resorts while the remaining 36 islands are deserted or used for private purposes, even though the owners' permits are for tourism.

Islands currently used as resorts include Matahari, Ayer, Bidadari, Pantara and Putri islands.

Kadir indicated that the island which would most probably host a casino was one located around Panjang island, which has an airstrip for light planes and helicopters.

The Seribu Islands consists of 110 islands, of which only 11 islands are inhabited. The total population of the 11 islands is almost 15,000 people, mostly poor fishermen.

The idea to open a casino in the Seribu Islands regency was first floated by Jakarta Governor Sutiyoso last year amid the mushrooming of illegal gambling dens in the city.

Localizing gambling activities is expected to increase the city's revenue since the current illegal gambling dens are believed to pay contributions to certain officials and security personnel as protection money.

According to a recent survey conducted by the city administration in cooperation with the Structural Development Institute of the University of Indonesia, most Jakartans have no objection to the idea of legalizing gambling in a designated location.

The plan for a casino on an island in the Seribu Islands regency was earlier supported by Jakarta Legislative Council speaker Edy Waluyo and several political parties, such as the largest Indonesian Democratic Party of Struggle.

A number of Jakarta councillors even went on a comparative study trip to the Genting Highlands gambling center in Malaysia last year.

As expected, however, some Muslim-based parties rejected the plan.

The Indonesian Ulemas' Council (MUI) also rejected the idea of opening a casino.

According to the Criminal Code, gambling is illegal unless it is permitted by the authorities. A presidential decree banned gambling across the country.

Governor Sutiyoso, nevertheless, said earlier that his administration planned to ask the central government to allow Jakarta to legalize casinos.