Indobuildco ordered to pay Rp 809 billion royalty to state

JAKARTA - PT Indobuildco, owned by Pontjo Sutowo, must pay a royalty of US$45,356,473 (equivalent to Rp 809.14 billion) to the state. This follows a ruling by the Central Jakarta District Court which partially granted a lawsuit filed by the State Secretary’s Office (Mensesneg) and the Gelora Bung Karno Complex Management Centre (PPKGBK), finding Hotel Sultan’s operator in breach of contract. ‘PT Indobuildco has been ordered to pay royalties for the use of HPL (Management Rights) land from 2007 to 2023 amounting to US$45,356,473 (converted to rupiah at the time of payment),’ said Central Jakarta District Court spokesperson Sunoto in a statement on Friday (28 November 2025). PT Indobuildco has requested a security deposit if it is required to vacate the Hotel Sultan in the GBK area, Senayan, Central Jakarta. This follows Civil Case No. 208/PDT.G/2025/PN.JKT.PST, a lawsuit filed by PT Indobuildco against the State Secretary’s Office, in which the state was ruled the winner in the property land dispute at GBK. Hamdan Zoelva, head of PT Indobuildco’s legal team, stated that the first reason for objection is a Supreme Court (MA) circular stating that immediate enforcement of the ruling must be accompanied by a security deposit. He said the security deposit is to cover potential future losses. PT Indobuildco has requested the security deposit amount to equal the total value of the Hotel Sultan property. ‘Just value the hotel building, it should be equivalent to the building’s value,’ Hamdan said when interviewed at the Central Jakarta District Court on Monday (9 February 2026). Previously, he told Kompas.com that the security deposit or compensation they seek is equivalent to the government’s acquisition of Hotel Sultan’s ownership at Rp 28.292 trillion. Hotel Sultan is set to be evicted on Thursday (18 June 2026). The execution is based on the Central Jakarta District Court’s ruling in Civil Case No. 208/PDT.G/2025/PN.JKT.PST regarding the clearance of Block 15 in the GBK area, formerly Hotel Sultan. Kharis Sucipto, legal counsel for Mensesneg and PPKGBK, said the execution date is a final ruling that must be respected by all parties. ‘This is a final ruling. The Central Jakarta District Court has set 18 June 2026 as the date for the eviction of Block 15 GBK, formerly Hotel Sultan. Therefore, we urge all parties to respect and support the execution process to proceed orderly,’ Kharis said, quoted on Monday (1 June 2026). Kharis explained that, according to information from the Central Jakarta District Court, a notice of execution for the eviction dated 19 May 2026 has been sent to PT Indobuildco via registered post. Kharis said the deadline given by the court is sufficient for PT Indobuildco to vacate Block 15 GBK voluntarily. On the other hand, PPKGBK, as the new manager, has time to prepare for the handover process to proceed orderly, safely, and without disrupting public interests. ‘With nearly a month’s grace period, we hope Indobuildco will voluntarily vacate the premises. The court’s letter also urges occupants or anyone who has gained rights from Indobuildco to occupy the land and buildings to leave voluntarily. This is crucial to prevent new issues during the execution,’ Kharis said. He stressed that the execution date marks the end of the lengthy legal process concerning the safeguarding of state assets in Block 15 GBK. ‘The legal process to safeguard state assets has reached its conclusion. The state has pursued all legal avenues, the court has issued a ruling, and now it is time for execution. Therefore, there are no further legal grounds to delay the return of state assets,’ he said.