Thu, 21 Apr 1994

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)