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)