Housing project halted over permit

JAKARTA (JP): The disputed construction of the Buaran Regency housing complex in East Jakarta has been suspended until the developer obtains the necessary permits, sources at the company said yesterday.

The developer, PT Agung Sedayu Metropolitan Development, has yet to obtain the building and land use permits from the city administration.

A marketing official who spoke on condition of anonymity told The Jakarta Post by telephone yesterday that the developer was now marketing some of the houses already completed but that all building activities had been temporarily halted.

The source said that the developer would continue the project as soon as it had met with all the administrative requirements, which the source said were "being processed."

"There is no indication that we have problems about obtaining the permits," the source said, adding that "everything is going smoothly".

The company suspended construction work following a strong warning from the city administration last week.

"It is a must for the developer to obtain the official permits, otherwise the administration will take firm action against it," said Idroes, the deputy governor in charge of government affairs.

Besides the absence of the building permits, the city administration has also objected to the project on the ground that the company failed to report on its procurement of a land use permit from another company, PT Bhumyamca.

Idroes said that such assignments require the governor's approval. (32)