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)