Indonesian Political, Business & Finance News

Indobuildco's Objection: Do Not Force the Execution of Sultan Hotel

| | Source: KOMPAS Translated from Indonesian | Legal
Indobuildco's Objection: Do Not Force the Execution of Sultan Hotel
Image: KOMPAS

The legal representative of PT Indobuildco, Hamdan Zoelva, believes that the plan to execute the evacuation of the Sultan Hotel area must be carried out carefully and cautiously, while still opening opportunities for resolution through negotiation between the disputing parties. This statement was made after the Central Jakarta District Court reportedly issued a determination for the implementation of the evacuation execution on 30 April 2026. According to Hamdan, the issuance of this determination does not automatically close the possibility of other legal efforts that can still be pursued in the case. “PT Indobuildco respects the court and every legal process that is underway. However, the execution of the Sultan Hotel should not be forced. Every execution plan must comply with the law and consider legitimate rights, including the rights of workers, tenants, and other affected parties,” said Hamdan Zoelva, quoted from Tribunnews, Friday (8/5/2025). The former Chairman of the Constitutional Court of the Republic of Indonesia explained that Civil Decision Number 208/Pdt.G/2025/PN Jkt.Pst does not solely contain an order for evacuation, but also emphasises the importance of resolution through negotiation or reconciliation. “Because Indobuildco’s rights as an investor have existed previously along with the investments that have been planted, the parties should pursue negotiation to obtain a fair result,” he said. Hamdan added that as long as the mediation process is still ongoing, execution should not be made the primary option. “If the negotiation and mediation process is still running, especially towards an agreement, then the execution should not be forced,” he said. Previously, the legal representative of the State Secretariat and PPKGBK, Kharis Sucipto, said that the court’s decision regarding the Sultan Hotel dispute has clarified the state’s legal position in the process. According to him, the government’s legal strength in the Sultan Hotel dispute case is not affected by various other administrative steps still being taken by related parties. Kharis added that all execution procedures have been carried out in accordance with applicable provisions, from the aanmaning process to constatering. “All procedural stages have been carried out in accordance with the provisions, so now it is just waiting for the implementation of the execution in the field after the cross-agency coordination is completed,” he said. In the decision, the court also affirmed the state’s takeover of the land formerly under building use rights (HGB) along with the buildings standing on it. At the same time, the compensation claim filed by PT Indobuildco was rejected.

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