Govt agrees to land-barter deal for giant property project

JAKARTA (JP): Indonesian Armed Forces Commander Gen. Feisal Tanjung has given a green light to a multi-billion rupiah land barter agreement between the National Police Headquarters and PT Mandala Pratama Permai (MPP), National Police Chief Gen. Banurusman said yesterday.

The land barter agreement was reportedly signed by the police force and MPP, which is co-owned by Hutomo Mandala Putra, on Aug. 15.

Under the agreement, MPP will take 6.5 hectares of the total tract of 14.5 hectares on which the City Police Headquarters stands to build a business center, hotel, apartments, shopping centers and other facilities.

The Jakarta Police Headquarters is located in a strategic location, just south of the Semanggi cloverleaf intersection, facing onto both Jl. Jenderal Sudirman and Jl. Gatot Subroto.

MPP has provided Rp 1.1 trillion (US$500 million) for the project, which includes a new city police office. Under the agreement, the company will also provide 50 hectares of land at Serpong for a housing development project for police families.

The 14.5 hectares of land are currently occupied by the office of the Jakarta City Police chief and his staff, the crime investigation unit, the rapid reaction force, the information service, the personnel directorate, the military police and the press room.

A huge field, usually used for police exercises and other events, will also have to be divided under the agreement.

"The construction plan is now being discussed among the related departments," Banurusman told reporters after presiding over a ceremony marking the 47th anniversary of the founding of the police's women's branch.

Asked why Police Headquarters had agreed to the deal, Banurusman said the move was related to the police's plan to improve its services to the people.

In addition, Banurusman said, the 33-year-old building could no longer support the police force's present duties and the police were subject to financial constraints.

"If we wait for the funds to come from the national budget it will take time, while the condition of the old building is inadequate for improving police duties," he said.

Banurusman, who is a former Jakarta Police chief, said that, under the agreement, the city police will get a new 24-story building complete with up-to-date equipment.

Next to the city police headquarters, a giant project called the Sudirman Business Center District is currently under construction. The 40.4-hectare project, which is partly owned by the Indonesian Army foundation, Kartika Eka Paksi, is being constructed at a cost of Rp 6.5 trillion and will feature integrated business centers, hotels, social services and entertainment halls. (01)