Governor defends Sarana Jaya's sale of camping site

JAKARTA (JP): Governor Sutiyoso defended on Wednesday the sale of 3.2 hectares of land located in the Cibubur Campsite in East Jakarta by city property company PT Pembangunan Sarana Jaya.

"(The allegation) is not true. Sarana Jaya had the authority to decide on the move. The company does not always need to ask for the approval of the City Council to run its business," the governor said.

Sutiyoso was responding to comments by the secretary of the City Council commission for economic affairs, Dani Anwar, who expressed regret on Tuesday for the failure of Sarana Jaya to consult with councillors before selling the land. Dani also said the company distributed part of the proceeds from the sale to its employees.

Speaking after a ceremony marking the signing of an accord with the Ministry of Transportation, Sutiyoso promised to look into the possibility that violations occurred in the sale of the land.

"We must presume the company is innocent to avoid any inappropriate interpretations of the company's action," Sutiyoso said.

Separately, Dani said the council would summon executives of the private company that purchased the plot of land, PT Kurnia Philio Selaras, to clarify the details of its deal with Sarana Jaya.

The private company reportedly has plans to build a shopping center on the plot.

"The case will be brought to the City Inspectorate to be investigated further. We also urge the city administration to delay the issuance of a building permit to the private company," Dani said.

The land, according to Dani, was sold by Sarana Jaya for Rp 27.2 billion (about US$2.86 million) to raise funds to cover its debts.

Dani alleged the sale violated the company's mandate to lease the site, adding that the company had yet to inform the City Council of the change of status of the city asset. The plot currently is being leased by the National Boy Scout Movement for use as a parking lot.

Dani said Sarana Jaya distributed Rp 130 million of the down payment on the land to its 90 employees.

Sarana Jaya claims the money was part of its "operational costs".

Contacted separately, the executive chairman of the National Boy Scout Movement, Syaukat Banjaransari, confirmed that the land was the property of the city administration.

"We were only temporary utilizing the site as a parking area. So it is the city administration's right to do anything it wants with the land.

"However, we expect any proposed plans for the site can be collaborated with our core activity of education," Syaukat said.

Syaukat said Boy Scout programs, including camping, training and scientific activities, are conducted in the area and attract at least 150,000 visitor each year.

The director of development at Sarana Jaya, Kemal Basha, said the land, acquired by the administration on April 1, 1974, was leased by the National Boy Scout Movement until July 13, 2000.

Meanwhile, possible irregularities were reported in another city asset in Pondok Kelapa, East Jakarta. A source close to Sarana Jaya said the company allegedly marked up the sale price of a three-hectare plot of land to be used for a housing complex.

According to the source, the original sale price was set at Rp 350,000 per square meter, but it was raised to between Rp 400,000 and Rp 500,000 per square meter last year.

Kemal refused to comment on the allegations. (07)