Indonesian Political, Business & Finance News

Irregularities found in Kapuk land deal

Irregularities found in Kapuk land deal

JAKARTA (JP): City administration has found irregularities in the deal between the local authorities and the owners of a 16- hectare plot in Kapuk Muara, West Jakarta.

The deputy governor for government affairs, Idroes, said yesterday that the deal saying that the land owners were entitled to claim the land back should the authorities use the plot for commercial purposes, instead of as a public cemetery as promised, contained some errors. The deal was said to be signed by the subdistrict head.

"The written agreement dated Feb. 16, 1971 used new Indonesian spelling, while the new spelling was introduced into official documents nationwide in 1972," he said.

The former subdistrict head denied signing the letter, he said.

Idroes said the administration suspected certain parties of trying to take advantage of the situation.

Residents of Kapuk Muara have recently accused the administration of cheating them in the land deal.

The residents met with the Indonesian Democratic Party faction at the City Council, saying that the 16-hectare plot of land they gave up for use as a public cemetery is now owned by a private firm.

The residents said the administration had failed to keep its promise not to commercialize the land.

The residents gave up the land for between Rp 400 (17 U.S. cents) and Rp 600 per square meter in 1971.

They said they would not have complained if the land had been used for a public cemetery as promised by the administration.

Idroes said that according to the original city planning the area, now covering 36 hectare of land, was supposed to be for a public cemetery but, the land use was changed for the 1985-2005 city planning period.

"The new city planning stipulates that the area should be used as office and residential area or other commercial sites," he said.

He said the city administration signed a barter agreement with PT Grisenda, a private company, in 1991. The city got a 43- hectare plot of land for public cemetery in Tegal Alur and Kamal Muara, West Jakarta, and the company was allowed to develop the 36-hectare of land in Kapuk Muara, including the disputed 16- hectare plot.

"The barter deal was legal as the City Council approved it," Idroes said. (yns)

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