Indonesian Political, Business & Finance News

Jonggol and Tangerang projects may be halted

| Source: JP

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)

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