Indonesian Political, Business & Finance News

Hotel Sultan Land Execution Scheduled for 18 June as Indobuildco Responds

| Source: CNN_ID Translated from Indonesian | Legal
Hotel Sultan Land Execution Scheduled for 18 June as Indobuildco Responds
Image: CNN_ID

Hamdan Zoelva, legal counsel for PT Indobuildco, stated that all possibilities remain open before 18 June 2026. Thus, the planned eviction execution is not yet final.

The Central Jakarta District Court has set the execution of the eviction for Block 15 of the former Hotel Sultan area in Gelora Bung Karno (GBK) for 18 June 2026.

Hamdan strongly rejected the planned execution, warning it could lead to legal issues and injustice. He stated that forcing the eviction would cause various problems.

Hamdan argued that labelling the execution as final oversimplifies the legal complexities. The site includes a hotel building, business operations, workers, tenants, vendors, and third-party rights that cannot be disregarded.

“The dispute concerns the land, not the building or the hotel business. The Hotel Sultan business is unequivocally owned by PT Indobuildco,” Hamdan stated on Wednesday (27 May).

Hamdan explained that the Hotel Sultan building was constructed by PT Indobuildco using its own funds, not state money, and not under a Build-Operate-Transfer (BOT) scheme. Therefore, the building and business cannot be seized solely through an eviction execution.

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

Hamdan also stressed that executing the eviction while ignoring building and business rights would not merely clear the land but halt Hotel Sultan’s operations entirely.

“This would have widespread consequences for workers, tenants, business partners, events, and government revenue from the hotel’s economic activities,” he said.

“Hotel Sultan is a service business. If the execution is mishandled, the hotel will cease operations. This would not only harm Indobuildco but also workers, tenants, business partners, and the state due to tax losses from hotel activities,” he added.

Hamdan also rejected claims that there are no legal grounds to delay the execution. He stated that key conditions must still be met before the court ruling can be enforced immediately.

These include clear identification of the object, protection of third-party rights, and guarantees as stipulated by the Supreme Court, especially in the event of a settlement.

“PPKGBK may call it final, but the execution must still be legally valid. A court ruling does not automatically satisfy all legal requirements. Clarity on the object, protection of third-party rights, and guarantees as required by Supreme Court Regulation (SEMA) must be in place,” he said.

Hamdan said PT Indobuildco does not reject dispute resolution. Instead, the company remains open to dialogue and negotiations with the government to find a fair, measurable, and legally sound resolution.

“Indobuildco is not opposing the state. We demand the law be properly enforced. If the government wishes to resolve this, they should sit down, assess each party’s rights, including building value, business operations, and land rights. A settlement would halt the execution,” he said.

Previously, the Central Jakarta District Court conducted a boundary verification as part of the follow-up to the planned execution of Hotel Sultan’s land on Monday (16 March).

According to CNNIndonesia.com, the verification was attended by Central Jakarta District Court officials, the Ministry of State Secretariat, PPKGBK as the execution applicant, the Ministry of Agrarian Affairs and Spatial Planning (ATR/BPN), and police.

“Boundary verification means confirming the boundaries as requested by us as applicants from PPKGBK and the Ministry of State Secretariat regarding state property in Block 15,” said PPKGBK Director Rakhmadi Afif Kusumo to reporters on Monday (25 May).

“This morning, we heard from the clerk that the boundary verification for Block 15 has been conducted, checking the former HGB 26 and HGB 27 which should already be state property,” he added.

Rakhmadi stressed that the Hotel Sultan land is state property, hence the execution process will continue.

“In our view, it is final as state property (BMN), meaning it has become the state’s asset. Our mandate from the Ministry of State Secretariat leadership is to secure and optimise state assets,” he said.

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