Governor defends Sarana Jaya's sale of camping site

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)