Investors often cheat, Joop says

Investors often cheat, Joop says

JAKARTA (JP): Minister of Tourism, Post and Telecommunications
Joop Ave acknowledged yesterday that many investors have
disguised their property projects as being for tourist resorts in
order to obtain immediate approval from the government.

"As the government has committed to developing the tourist
industry, many businessmen said that their planned projects are
tourism-related businesses. But I've found that only 10 percent
of their projects are really for tourist attractions and the
other 90 percent for housing complexes or other property
businesses," he said after delivering a speech at a seminar on
investment in the tourism sector at the Shangri-La hotel here.

He also said that the government will never approve tourism
projects to be built on fertile land producing agricultural
commodities.

He said the tourist resort in Nusa Dua, Bali, is a good
example of a tourist facility development on barren land.

When asked, Joop said that he was not yet informed on whether
the 8,000-hectare Teluk Naga tourist center would be established
on an agriculturally productive area on the coast of Tangerang,
West Java.

The Teluk Naga project, which will be jointly developed by the
West Java administration and private sector firms, was approved
by President Soeharto late last month. The project will include
marine attractions, apartments, malls, a fishermen's village and
low-cost houses.

The project, the completion of which is expected to take 21
years, will include the reclamation of 4,000 hectares of the
Teluk Naga coast and 2,500 hectares of ponds. Rice fields and
houses in the area will be demolished for the project, while
thousands of people will have to leave the site.

Joop said yesterday that no tourist project should affect
farmlands or residential areas.(icn)