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.