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Islands caught in power struggle

| Source: JP

Islands caught in power struggle

Ahmad Junaidi, The Jakarta Post, Matahari Island

As the city administration lacks the funds and experience
to manage islands within Pulau Seribu (Thousand Islands), it
should allow private companies to continue managing them, a
company executive said here over the weekend.

"The administration would not be able to manage all the
islands by itself. It has neither the funds nor experience," the
director of PT Pantara Wisata Jaya Juliana Pandji told The
Jakarta Post.

Juliana noted the administration would face difficulties in
providing the hundreds of billions of rupiah necessary for
developing the islands as tourist resorts.

"It would be better if the administration allowed private
investors to manage them and the administration could collect
taxes," she said, adding that Matahari island always pays taxes
to the administration.

PT Pantara, a member of Artha Graha group controlled by banker
Tommy Winata, manages four islands, namely Matahari, East
Pantara, West Pantara and Sebaru Kecil, which are all located
about 70 kilometers north of Jakarta.

The City Council earlier suggested that the administration
take over some privately-managed islands in Pulau Seribu in line
with the spirit of regional autonomy.

Meanwhile, Pulau Seribu district chief, Unu Maknun, revealed
that only nine of the 45 islands managed by private companies had
been developed as tourist sites.

"We urge the companies managing the islands to open the
islands for marine tourism," Unu said over the weekend.

He said the Pulau Seribu district, which was scheduled to be
inaugurated as a new regency this week, would identify the other
36 islands that have yet to be developed as tourist resorts.

He said the administration might take over the islands, saying
that the certificates to manage the islands would last for the
next eight years.

"We could give some compensation to the companies managing the
islands. We could also work together with private investors in
managing them," Unu said.

He admitted that the companies managing the islands still paid
annual property taxes, which amounted to hundreds of millions of
rupiah.

He expected the islands could contribute more revenue if they
were developed into tourist resorts, which would require them to
pay restaurant and hotel taxes.

The city revenue agency earlier announced that two hotels in
Pulau Seribu had yet to pay their tax arrears. They are Ayer
island hotel with tax arrears amounting to Rp 264 million
(US$29,333) and Sepa island hotel with arrears of Rp 192 million.

Unu admitted that the businesses managing the 36 private
islands, who obtained their certificates from past governors,
were unfriendly to local residents.

Councillor Posman Siahaan of the Unity and Justice Party
earlier said that security guards of the private islands often
fired warning shots to drive away fishermen wanting to land on
the islands when, for example, their boats developed engine
trouble.

Posman urged the administration to take over the islands,
especially those that were used for private purposes by certain
business magnates.

The business magnates include publisher Surya Paloh, property
tycoon Ciputra and hotelier Pontjo Sutowo. Former President
Soeharto's children, namely Sigit Harjojudanto, Siti Hardiyanti
Rukmana and Bambang Trihatmodjo and Soeharto's half brother
Probosutedjo also reportedly own some of the islands.

Probo once built a dam between two islands, closing the dam
off from the ocean waves. The islands have reportedly suffered
damage as the businessman has not maintained them.

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