Fri, 21 Mar 2003

Kelapa Gading developer fails to meet obligations

Bambang Nurbianto, The Jakarta Post, Jakarta

PT Summarecon Agung, the main property developer in Kelapa Gading, North Jakarta, has failed to give some 34.3 hectares of land back to the city with social facilities, as part of its contractural obligation.

City regulations state that once a company wins a contract from the city to build, it must also develop 30 percent of the land for social facilities, such as a park or a church and then that land is legally transferred back to the city administration.

However, data from the City Asset Bureau dated March 4, 2003, released during Thursday's hearing at the City Council's Commission D for development affairs, states that the 34.3 hectares had been accumulated over the years after it was given development projects between 1989 and 1997.

The developer is now required to give the 34.3 hectares of public land back to the city after it developed housing projects on 96.9 hectares in two subdistricts of Kelapa Gading district: Pegangsaan Dua and Kelapa Gading Barat.

Head of the Commission D Koeswadi Soesilohardjo urged the company as the developer in the fastest growing area in the city, to immediately fulfill its obligation.

"We demand that PT Summarecon Agung immediately hand over the land as is required," Koeswadi told the press after meeting with the company's management.

PT Summarecon president director Sunardi Rusli said that the data issued by the City Asset Bureau was not entirely accurate, but he could not elaborate. He said that parts of the land had been handed over to the city administration.

But he failed to show clear data about how obligation had been fulfilled.

Koeswadi stressed that PT Summarecon could not claim that it had fulfilled its obligation if it could not show an official document.

"They can claim that they have handed over the land, but if there is no supporting document we cannot just believe them," he added.

During the meeting, Sunardi also revealed that the city administration still owed PT Summarecon 4.7 hectares of land in Cilincing, North Jakarta, worth some Rp 53 billion rupiah.

The city administration constructed buildings on the land for a city training center for job seekers.

According to Sunardi, Gubernatorial Decree no. 7 issued in 1994 allowed PT Summarecon to provide the 4.7 hectares of land in Cilincing as part of the social facility/public facility for PT Summarecon's properties in Kelapa Gading.

Kelapa Gading district, which was established in early 1990s, is the fastest growing area in the city. The 1,633-hectare district is now crowded with shopping centers and housing.

There are three subdistricts in Kelapa Gading district: Kelapa Gading Barat, Kelapa Gading Timur and Pegangsaan Dua. Kelapa Gading district was formerly part of Koja district, but it became a separate district following the development of the area.