Hotel Sultan Dispute: State-Owned Land, Privately Managed Building

The dispute over the Hotel Sultan area has heated up again after the issuance of an execution order for the evacuation of the Hotel Sultan site by the Central Jakarta District Court.

PT Indobuildco’s legal representative, Hamdan Zoelva, assessed that carrying out this execution could potentially disrupt the investment climate if it is done without considering investors’ rights.

PT Indobuildco is a company owned by Pontjo Sutowo, which has been managing the Hotel Sultan area in the Gelora Bung Karno (GBK) region, Central Jakarta.

Hamdan stated that in the civil decision Number 208 of 2025, the panel of judges did order the evacuation of the Hotel Sultan area.

However, according to him, the judges also emphasised the importance of a fair resolution through negotiation and mediation channels.

He noted that this consideration aligns with the Judicial Review Decision Number 276 PK/Pdt/2011, which affirms that PT Indobuildco’s rights as an investor predate the current situation, including the investments already made on that land.

Hamdan also emphasised that his side will still pursue various legal efforts regarding the Hotel Sultan area dispute.

According to the former Chief Justice of the Constitutional Court (MK), the legal process for this case is not yet complete, even though there has been an execution order for the evacuation of the Hotel Sultan site by the Central Jakarta District Court.

He stated that PT Indobuildco is still filing appeals and cassation for this case.

“PT Indobuildco respects the courts and every ongoing legal process. However, the execution of Hotel Sultan should not be forced. Every execution plan must truly adhere to the law and must not ignore legitimate rights, workers’ rights, tenants, and other affected parties,” said Hamdan.

According to him, the Hotel Sultan building is not under a build, operate, transfer (BOT) scheme, so it cannot be directly taken over or executed.

He said that if the building is to be taken over or executed, there must be a clear legal mechanism, including compensation payments to the building owner.

“The Hotel Sultan building is not BOT. The building and hotel business are the rights of PT Indobuildco. Therefore, the Hotel Sultan building cannot be executed just like that. If the building is to be taken or executed, there must be a legal mechanism and compensation payments,” Hamdan stated.