Indobuildco Lawyer: Execution of Sultan Hotel Could Disrupt Investment Climate
JAKARTA, KOMPAS.com - The legal representative of PT Indobuildco, Hamdan Zoelva, stated that the execution of the Sultan Hotel could disrupt the investment climate.
PT Indobuildco is a company owned by Pontjo Sutowo, which has been managing the Sultan Hotel located in the Gelora Bung Karno (GBK) area, Central Jakarta.
Hamdan said that in the civil decision Number 208 of 2025, the panel of judges indeed ordered the evacuation of the Sultan Hotel area.
However, according to him, the judges also emphasised the importance of a fair resolution through negotiation and reconciliation.
“The PK decision affirms that because Indobuildco’s rights as an investor existed previously along with the investments already made, the parties should undertake efforts to resolve the matter through negotiation to achieve a fair outcome for both sides,” Hamdan told Kompas.com on Friday (08/05/2026).
Hamdan also confirmed that his side will still pursue legal remedies regarding the Sultan Hotel area dispute.
According to the former Chief Justice of the Constitutional Court (MK), the legal process for the case is not yet complete, even though an execution order for the evacuation of the Sultan Hotel area has been issued by the Central Jakarta District Court. PT Indobuildco is also still filing appeals and cassation.
Hamdan emphasised that the object of the dispute in the Sultan Hotel case concerns the land of the Sultan Hotel area, not the building and hotel business.
According to him, the Sultan Hotel building is not under a build, operate, transfer (BOT) scheme, so it cannot be directly executed or taken over.
If the building is to be taken over or executed, there must be a legal mechanism and compensation payment.
“The Sultan Hotel building is not BOT. The building and hotel business are the rights of PT Indobuildco. Therefore, the Sultan Hotel building cannot be executed just like that. If the building is to be taken or executed, there must be a legal mechanism and compensation payment,” Hamdan said.
In addition, Hamdan previously stated that one of the reasons for PT Indobuildco’s objection is the Circular Letter from the Supreme Court (MA) which states that the implementation of immediate decisions must be accompanied by a security deposit.