Governor suspends several megaprojects
Governor suspends several megaprojects
JAKARTA (JP): The city administration has been forced to
suspend a number of major development projects included in the
1998/1999 budget because of the prolonged monetary crisis,
Governor Sutiyoso said.
Sutiyoso said on Wednesday that among the suspended projects
were the controversial three-tier transit system, the Manggarai
integrated bus terminal and the Jakarta Bay land reclamation
project.
"I don't think that any physical development projects will
take place this year given our current financial condition,"
Sutiyoso said without giving further details.
Head of City Council Commission D for development Ali Wongso
Sinaga welcomed Sutiyoso's decision to suspend the projects.
"These projects have all but been postponed by developers
already," he said yesterday.
Ali also urged the administration to make private companies
involved in the land reclamation project to declare whether or
not they were able to continue with the work.
"One or two companies have started reclamation work but their
progress has been very slow," he said.
Ali said it was better if the administration identified other
more capable investors, including foreign firms if necessary, and
asked them to submit a new tender for the project.
"The administration should judge companies by their practical
achievements, not by what they have written on paper," he said.
Ali also demanded that the administration revoke concessions
awarded to companies on the strength of their political
connections.
"An open tender for the project should be carried out in the
near future. The current concession holders would all be welcome
to meet their competition on a level playing field and prove
their worth," he said.
Companies which have begun work should be suitably compensated
after their achievements have been evaluated by the
administration, he added.
The administration has to date signed seven Memorandums of
Understanding and three development agreements with private
companies regarding the reclamation project.
Among companies with an involvement in the project are PT
Kapuk Naga Indah, a Salim Group subsidiary which holds a
concession to reclaim 674 hectares of land; PT Pembangunan Jaya
Ancol, a joint venture between the city administration and
property tycoon Ciputra which holds a 392 hectare concession; PT
Manggala Krida Yudha, a company partly owned by former President
Soeharto's youngest daughter Siti Hutami Endang Adiningsih, which
holds a 375 hectare concession; and PT Jaladri Kartika Eka Paksi,
a company associated with the Armed Forces which holds rights to
200 hectares of land.
The company owned by Hutami was the first to win a concession
on the reclamation project. Her company signed an MOU with the
administration in August 1996.
The other companies joined later after the city administration
extended invitations to them through the Pantura Reclamation
Board.
The board was established following Presidential Decree No.
52/1995 which granted the board authority to develop the plan and
issue all project permits.
The project aims to transform the northern coastal area into a
future waterfront city by reclaiming 2,700 hectares of inundated
land and revitalizing 13,709 hectares of land along the north
coast. (cst)