Hotel Mulia fined Rp 98b for infringing spatial permits

JAKARTA (JP): The Hotel Mulia, which accommodated about 1,800 of the 19th SEA Games participants, has been fined Rp 98 billion (US$27.22 million) by the Jakarta administration for disregarding its spatial permits.

Based on its block plan, jointly signed by the Jakarta governor and the Minister/State Secretary Moerdiono, the administration only permitted the construction of a 16-storey hotel.

But the Games consortium, which is chaired by President Soeharto's son Bambang Trihatmodjo, built a 40-story hotel instead.

State Minister of Youth Affairs and Sports Hayono Isman said Wednesday that the Hotel Mulia had to pay the fine because the building did not comply with the permit issued by the administration.

"The figure is big but I believe the hotel has a great prospect in the future to make a big profit due to its strategic location," he said, as quoted by Suara Karya.

Hotel Mulia in on a four-hectare lot next to the Senayan shooting range.

The hotel's public relations staff declined to comment on the fine, saying that consortium member Enggartiasto Lukita would answer questions on behalf of the hotel.

Kontan economic tabloid reported that the hotel did not have any building permits .

It also said that Moerdiono, who is also the chairman of the Gelora Senayan Foundation, only issued a permit to build an athletes' village and not a five-star hotel.

Jusuf Thalib, a Golkar member of House Commission VII for sport and youth affairs, said yesterday that despite its participation in the SEA Games, the hotel still had to pay the fine.

"However, I think the administration must allow the hotel management to pay the fine step by step. This is a new hotel and it needs to survive," he said.

Function

Commenting on the hotel's function, which was initially said to be an athlete's hotel instead of a business hotel, Jusuf said there should be a written consensus between the hotel management and the state minister of youth affairs and sports.

"I think it's the state minister's problem because functionally he is the responsible person in the case," he said.

The hotel's public relations manager, Ira Maya Sopha, had previously said that the hotel was meant to be a business hotel.

But Hayono rejected the statement, saying that he spoke to the hotel's director, Joko S. Tjandra, about the hotel's function after the SEA Games finished.

"From my conversation with Joko, he agreed to help the government accommodate athletes in all multisports events in Jakarta," he said.

The $240 million hotel was built in only nine months and accommodated nearly 1,800 athletes, despite only having 588 of its 1,008 rooms ready during the Games.

Kontan also reported that the government provided the hotel the rights to the land for 35 years. (yan)