Hotel Sultan Execution Not Yet Final, Says PT Indobuildco

Jakarta, VIVA – The dispute over the planned enforcement of the former Hotel Sultan land in Jakarta’s Gelora Bung Karno (GBK) area has reignited. PT Indobuildco has stated that the scheduled land clearance on 18 June 2026 is not yet final and could still change.

Hamdan Zoelva, legal counsel for PT Indobuildco, said the execution process cannot be viewed as simply clearing the land. He explained that the disputed site houses an operational hotel with active business, employees, tenants, and third-party rights.

“Understand that the dispute is about the land, not the building or the hotel business. The Hotel Sultan business is entirely owned by PT Indobuildco,” Hamdan said on Wednesday, 27 May 2026.

Hamdan warned that forcing the execution without considering other legal aspects could have widespread consequences and potentially halt the hotel’s ongoing operations.

He noted that the Hotel Sultan building was entirely constructed by PT Indobuildco, not using state funds or through a Build, Operate, Transfer (BOT) scheme.

“The Hotel Sultan building is not a BOT project. It was built solely by PT Indobuildco. Therefore, there is no basis for taking over the building and business without proper legal procedures and fair compensation,” he said.

He added that the issue extends beyond a land dispute, affecting the continuity of the business and the livelihoods of many dependent on the hotel’s operations.

“Hotel Sultan is a service business. If executed incorrectly, the hotel will cease operations. This would not only harm Indobuildco but also workers, tenants, business partners, and the state due to lost tax revenue from the hotel’s activities,” he stated.

Hamdan also dismissed the notion that all legal processes have concluded, leaving only the execution date. He stressed that certain legal conditions must still be met before clearance can proceed.

“PPKGBK may call this final, but the execution must still be legally valid. A court ruling does not automatically fulfil all legal requirements. There must be clarity on the object, protection of third-party rights, and guarantees as required by SEMA,” he said.

On the other hand, PT Indobuildco has stated it remains open to resolving the dispute through dialogue with the government to prevent wider repercussions.