Governor Sutiyoso sues Hotel Mulia for Rp 15b

Governor Sutiyoso sues Hotel Mulia for Rp 15b

JAKARTA (JP): Governor Sutiyoso, in a hearing at the Central
Jakarta District Court on Wednesday, demanded the management of
five-star Hotel Mulia, PT Jakarta Country Club, pay a Rp 15.13
billion (US$2.25 million) fine for violating building height
restrictions.

The lawyer representing the governor's office, Saut Purba,
said the hotel management failed to pay the fine despite
receiving repeated written warnings from the city administration.

"We also asked the court to seize the hotel located on Jl.
Asia Afrika, Central Jakarta, as a guarantee while the lawsuit is
being heard," Saut said.

He said the hotel management violated city regulations on the
maximum height of buildings by building the 40-story hotel,
instead of a maximum of 16 stories as stated in the building
permit.

The city administration initially fined the hotel Rp 20.5b in
November 1997 for violating the maximum height when constructing
the $240 million hotel, he said.

The defendant asked for a 75 percent reduction, but the city
administration lowered the fine by 25 percent to Rp 15.37 billion
in October last year, he said.

Saut said the hotel management, a subsidiary of the 1997 SEA
Games Consortium, chaired by former president Soeharto's second
son Bambang Trihatmodjo, paid Rp 250 million of the fine on Feb.
19, this year.

"The defendant has yet to pay the remaining Rp 15.13 billion,
the deadline of which lapsed on Feb. 25," he added.

The hotel management's lawyer, Jamalis Purba, said the lawsuit
was leveled against the wrong party since the hotel secured a
building permit before constructing the hotel.

"The lawsuit should be filed against the institution which
issued the building permit for the hotel," Jamalis said outside
the courthouse.

The hotel was opened in September 1997 by Soeharto. The
facility was used to accommodate athletes competing in the 19th
Southeast Asian (SEA) Games held in October that year.

The initial plan approved for the hotel project, jointly
signed by then Jakarta governor Surjadi Soedirdja and former
state secretary/minister Moerdiono, allowed for the construction
of a 16-story structure. But the contractor built the 40-story,
1,008-room hotel.

Presiding judge Agus A.G. Dewata adjourned the trial until
next week to hear the defendant's response.(jun)