Hotel Mulia seeks reduced penalty

JAKARTA (JP): The management of the five-star Hotel Mulia has asked the city administration for a 75 percent reduction in the Rp 20.5 billion penalty imposed on it for violating building height restrictions, Governor Sutiyoso has said.

Speaking to reporters on Thursday, Sutiyoso disclosed that the hotel made the request in a letter which he received a day earlier.

He said that the Mulia's request was "inappropriate and irrational".

"I will never give my agreement and meet their request. No way," the governor said.

He pledged to stick to his previous decision to give the hotel a 25 percent discount on the fine, payable in six-month installments from October this year.

The hotel's management and contractor were fined last year for violating 1975 bylaw No. 4 on high-rise buildings and 1985 bylaw No. 9 on building height regulations.

The plans approved by then Jakarta governor Surjadi Soedirdja and former minister/state secretary Moerdiono allowed for the construction of a 16-story structure.

The contractor then went on to build a 40-story tower.

The US$240 million hotel was inaugurated in September last year by former president Soeharto. Completion of the 1,008-room hotel was rushed through so it could serve as the athlete's village in the 19th Southeast Asian (SEA) Games held here in October last year.

The hotel is partly owned by the Jakarta Country Club, a subsidiary of the 1997 SEA Games Consortium chaired by former president Soeharto's second son Bambang Trihatmodjo.

The management has continually lobbied city administration officials, including Sutiyoso, for a reduction in the fine. Their efforts finally resulted in the 25 percent discount payable in six-month installments.

None of the hotel's executives or public relations staff have ever been willing to answer questions regarding the fine.

Governor Sutiyoso on Thursday dismissed allegations that he was afraid of facing Bambang in the case.

"Such a thought has never crossed my mind," he said. (ind)