Independent body will manage waterfront city

Independent body will manage waterfront city

JAKARTA (JP): The municipal administration will form an
independent authority to manage the development of the new
waterfront city in North Jakarta.

Head of the City Development Planning Board Ery Chajaridipura
said in a hearing with the City Council concerning the land
reclamation project along Jakarta's coast yesterday that the
authority will be responsible for coordinating reclamation
activities. He said it will also develop facilities for the new
city.

"The authority, which will be set up as a city-owned company,
will be responsible for accommodating the interests of developers
and investors, as well as the city administration itself," Ery
said.

For that reason the city administration will propose a draft
bill on the establishment of the authority and another bill on
the planning of the waterfront city for deliberation by the City
Council in August. The land reclamation project is scheduled to
start early next year, he said.

"These bills are the most important steps and must be
completed before starting the land reclamation project," Ery
said.

He also cited the necessity of a new decree on city planning
because the existing plan does not cover the planned waterfront
development.

Deputy chairman of the planning board, Budihardjo Sukmadi,
said that the new authority will have a number of complicated
duties, including attracting investors and raising the additional
Rp 3 trillion (US$1.36 billion) needed to restore existing areas
in North Jakarta.

"The condition of the existing areas is bad. They are
vulnerable to flooding and traffic jams," Budihardjo said.

President Soeharto approved the land reclamation plan in North
Jakarta proposed by the city administration last February. The
reclamation project is expected to expand Jakarta by 2,700
hectares.

Land reclamation is needed to direct the development of the
capital to the north because currently development has been
expanding mostly to the South, which is earmarked as a water
catchment site.

The city administration predicts that the land reclamation
project will be finished in 30 years.

Ery also explained that Governor Surjadi Soedirdja has formed
a project management unit, which is responsible for preparing a
work plan, a priority plan and business and marketing plans.

Three zones

Ery said the management unit is currently preparing thorough
plans to prevent the project from causing problems, such as
flooding in other areas and environmental disturbances.

The city administration plans to divide the additional area of
2,700 hectares to serve several functions: 1,222 hectares for
residential areas, 88 hectares for a central business district,
426 hectares for a combination of industrial estates and business
centers, 37 hectares for greenery, 420 hectares for mangrove
forests, 136 hectares for port and industrial areas and 371
hectares for facilities.

The project will be divided into three zones. The western zone
from Pluit to Kamal Muara will be used for residential areas. The
central zone from Pluit to Koja will be used for a business
district with high-rise buildings. The east zone from Koja to
Cilincing will consist of the extension of the Tanjung Priok
port, business center and low-cost residential area.

Ery pointed out that the land in the waterfront city will be
relatively cheap with price range of between US$600 and $800 per
square meter. By comparison the price of the land in the city's
exclusive areas ranges from $1,000 to $2,000 per square meter.

To finance the project, the city administration has chosen to
cooperate with domestic and foreign investors. The city
administration will play a major role in renting out the
reclaimed land. The city administration predicts that in 30 years
it will earn $2.2 billion from fee collection and rent.

"Twenty local and foreign companies have expressed interest in
joining the project. They have sent proposals to the management
unit," Ery said.

One of the investors is PT Manggala Krida Yuda, which has
signed an agreement with state-owned PT Pelabuhan Indonesia II,
to reclaim 500 hectares of shoreline in east Ancol. "But the
reclamation work has not yet begun pending completion of the
draft bill on the waterfront city planning," Budihardjo added.
(yns)