Mon, 19 Oct 1998

Jonggol and Tangerang projects may be halted

BANDUNG (JP): West Java Governor R. Nuriana has expressed pessimism over the continuation of a development project in Bogor and a reclamation project in Tangerang following a revocation of Presidential decrees for the ventures.

"Who will want to continue the projects in a crisis like this? Many companies have gone bankrupt and could not hope to take up the projects, which require a large amount of investment," he said in Bandung on Friday after installing AA Tarmana as the provincial capital's new mayor for the 1998/2003 term.

Nuriana's statement was in sharp contrast to earlier comments that he was optimistic the projects could be continued.

On Wednesday, President B.J. Habibie revoked the decrees (issued by the then president, Soeharto) on the development of Jonggol township in Bogor and the reclamation project on the Kapuk Naga coast in Tangerang along with another reclamation project in Jakarta Bay.

The move was reportedly aimed at redressing possible collusive and nepotistic practices that may have taken place during the original tender process.

The continuation of the projects has now been entrusted to the governors of Jakarta and West Java.

The Kapuk Naga reclamation project, scheduled to be completed within 15 years, was designed to preserve mangrove forests along the coast.

The Ministry of Forestry and Plantations recently ordered that the 30,000-hectare project, linked to one of former president Soeharto's sons, be put on hold until the developer settled the forest obligation with the ministry.

The West Java administration sent a team, led by Nuriana himself, to conduct a comparative study in the Netherlands in 1996 for the development of the Kapuk Naga reclamation project.

The revocation of the decrees, he said, would allow all developers to have an equal chance to take part in the continuation of the projects.

Developers wishing to take on the projects will have to make a bid in a transparent tender process, he said.

"I would be happy if there are any developers willing to continue the projects."

He said the old developers would be given the opportunity to continue the projects, but would not be given special treatment in the tender process. (43/jun)