Hotel Mulia fined Rp 98b for infringing spatial permits

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)