Indobuildco Rejects Allegations of State Asset Seizure

JAKARTA – The dispute over the land where the Hotel Sultan stands in the Gelora Bung Karno (GBK) complex, Central Jakarta, remains unresolved. The government, through the Gelora Bung Karno Complex Management Centre (PPKGBK), citing a ruling from the Central Jakarta District Court, has stated it will take over management of the property in the capital. However, PT Indobuildco, the company owned by Pontjo Sutowo, which has managed the Hotel Sultan for years, is refusing to back down. Hamdan Zoelva, legal counsel for PT Indobuildco, said the allegations against the company are reckless and damaging to its reputation. He clarified that PT Indobuildco holds legitimate legal rights to manage the Hotel Sultan under the law. The Hotel Sultan’s construction started in 1971 after Jakarta Governor Ali Sadikin asked Ibnu Sutowo to build an international-standard hotel for the PATA Conference and other state events. A Minister of Home Affairs Decree No. 181/HGB/Da/72 dated 3 August 1972 granted the company a Right to Build (Hak Guna Bangunan or HGB) for the land. PT Indobuildco then managed the Hotel Sultan’s land under State-issued HGB Nos. 26/Gelora and 27/Gelora for 30 years until 2002. The HGB was later extended for 20 years, expiring in 2023. However, PT Indobuildco submitted another HGB extension request to the Jakarta Regional Office of the National Land Agency on 1 April 2021. ‘Our legal team firmly rejects these accusations as PT Indobuildco currently holds legitimate rights to the land, with a 30-year renewal process ongoing,’ Hamdan Zoelva stated at a press conference at the Hotel Sultan on Friday, 15 September 2023. Additionally, the former Constitutional Court Chief stated that one of PT Indobuildco’s objections is based on a Supreme Court circular requiring immediate enforcement of rulings to be accompanied by a security deposit. The deposit, he said, is to cover potential future losses, with PT Indobuildco demanding an amount equivalent to the Hotel Sultan’s total property value. ‘Just calculate the value of the hotel building, it should be equivalent to that,’ Hamdan said during an interview 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 the Hotel Sultan, valued at Rp 28.292 trillion. The Hotel Sultan land dispute has spanned over two decades, beginning as the company’s HGB on state-owned land neared expiration. On 10 January 2000, PT Indobuildco applied for an HGB extension through the State Secretariat Ministry, the land rights holder in the GBK area. The Jakarta Regional Office of the National Land Agency (BPN) issued an extension decision on 13 June 2002, granting a 20-year extension effective from 4 March 2003. The government assessed the extension could cause up to Rp 1.93 trillion in state losses. On 27 October 2005, the Corruption Eradication Task Force began investigating alleged mismanagement of Gelora Senayan assets. In 2006, PT Indobuildco filed a lawsuit at the South Jakarta District Court regarding land management rights, targeting several state institutions including the BPN, State Secretariat, GBK Management Body, Attorney General’s Office, Jakarta Regional BPN, and Central Jakarta Land Office. The South Jakarta District Court ruled in favour of PT Indobuildco, declaring its HGB legally valid. The court also found the BPN’s decision on Land Management Rights (HPL) claimed by the State Secretariat had legal flaws. The government appealed to the Jakarta High Court, but in ruling No. 262/PDT/2007/PT.DKI dated 22 August 2007, PT Indobuildco again won. Legal challenges proceeded to the Supreme Court, but the government remained unsuccessful. Multiple requests for judicial review since 2008 were also rejected. After four PK attempts, the government finally won the case. Following the victory, the government stated it would not extend PT Indobuildco’s HGB and opted to revitalise the GBK area. During President Joko Widodo’s administration, BPKP Chief Yusuf Ateh stated all state assets, including the Hotel Sultan area, would be audited to verify legal status and value. Thus, the government confirmed it would not extend the Hotel Sultan land’s HGB, returning control to the State Secretariat Ministry, which will take over management. The Hotel Sultan will be evicted on Thursday, 18 June 2026. The execution is based on a Central Jakarta District Court ruling in case No. 208/PDT.G/2025/PN.JKT.PST regarding the clearance of Block 15 in the GBK area, formerly the Hotel Sultan. Legal counsel for the State Secretariat and PPKGBK, Kharis Sucipto, stated the eviction date is a final ruling that all parties must respect. This is a final ruling. The Central Jakarta District Court has set 18 June 2026 as the eviction date for Block 15 of the GBK former Hotel Sultan area. Therefore, we urge all parties to respect and