Indonesian Political, Business & Finance News

Governor defends decision to punish 11 real estate developers

| Source: JP

Governor defends decision to punish 11 real estate developers

JAKARTA (JP): Governor Surjadi Soedirdja, in response to the
decision of East Jakarta Mayor Sudarsono to suspend the permits
of 11 real estate developers, told reporters that while he is not
well acquainted with the decision that he agrees with it.

The decision effectively shuts down the 11 beginning April 18
by preventing them from acquiring land certificates, building
permits or any other documentation.

"Mayor Sudarsono hasn't yet presented a detailed report to me
but I think his decision is in accordance with the city
regulations," Surjadi said.

Surjadi made the remark after inducting four high ranking
officials at City Hall yesterday.

Surjadi said he believes Sudarsono had acceptable reasons for
his decision.

The developers in question are PT Bangun Indah Sakti, PT Aneka
Elok, PT Inti Utama Dharma, PT Asmawi Agung Corporation, PT
Central Bumi Indah, PT Gubah Nusa Semesta, PT Altan Karsa Prisma,
PT Bina Karnada, PT Nusa Persada and PT Billy & Moon and the
state-owned Perumnas at Perumahan Malaka Asri.

Their violations range from misusing plots designated for
social and public facilities to illegally acquiring land permits
from the state-owned housing development company Perumnas.

On the same occasion, H. Prawoto, assistant to the city
administration's secretary for economic development, said the
core of the problem may have been the different interpretations
of permits on land use (SIPPT).

"Very frequently, developers interpret the issuance of SIPPT
totally differently from the city administration," Prawoto said.

Prawoto said that in many cases of abuses it is small
developers who are to blame.

"Small developers, for instance those who build housing
complexes on only 5-hectare plots of land, often neglect their
responsibilities once they succeed in selling most or all of the
houses they have built," Prawoto said.

The City Council also voiced its support for the mayor's
stand.

Sjarifuddin Siregar Pahu of the United Development Party
praised the action as courageous, especially considering the
widespread public speculation on collusion between bureaucrats
and entrepreneurs.

"I totally support the mayor's action... they (the developers)
should be given sterner punishment. If necessary, we should bring
them to court," he told reporters.

He suspected that those developers might have committed
manipulation in order to gain personal profits.

Another city councilor, Arie Putra Bintana of the Golkar
faction, also supported the mayor's move and praised the
mayoralty's measures against corrupt developers. (06)

View JSON | Print