Indonesian Political, Business & Finance News

Kelapa Gading project angers residents

| Source: JP

Kelapa Gading project angers residents

Rendi A. Witular, The Jakarta Post, Jakarta

A basketball arena and retail outlets being built in Kelapa
Gading, North Jakarta, violate the land use permit, which states
the lot is to be used only for social and public facilities,
according to residents.

The city administration spokesman, Muhayat, told The Jakarta
Post on Tuesday that land set aside for social facilities could
only be developed for the benefit of the public, which includes
the construction of schools, places of worship, recreational
parks, sports facilities or state offices.

While only public infrastructure projects such as bridges and
roads can be developed on land set aside for public facilities,
he said, adding that shops or other commercial buildings could
not be built on land designated for social and public facilities.

However, Muhayat would not say whether the arena violates the
land use permit.

The complex, which will include an international-standard
basketball arena, is being developed on an empty plot of land in
the middle of a housing complex, much to the anger of residents.

The city administration plans to build the largest basketball
stadium in Southeast Asia on Jl. Kelapa Nias Raya in Kelapa
Gading.

The sports complex is being constructed by a subsidiary of
private company PT Satria Mahaka, under the build-transfer-
operation system.

The president director of the company, Erick Thohir, said on
Tuesday that shops could be built on land designated for social
and public facilities.

"You can check it with the city administration .... So we are
not violating the function of the land," Erick said.

He added that any problems arising from the construction of
the sports complex were the responsibility of the city
administration.

"I was just appointed by the administration to handle and to
manage the project. Nothing more. Problems such as the land
permit and informing the public about the project are the
responsibility of the administration," he said.

The three-story complex will include 62 retail outlets, each
of which will be leased to retailers for between Rp 550 million
and Rp 1.5 billion (US$150,000).

Since the cornerstone of the complex was laid in June 2001,
the construction has been fiercely criticized by local residents,
who object to the arena being built in the middle of their
housing complex on land meant for social and public facilities.

A neighborhood chief, Yacob F. Mulya, objects to the plan
because he says the complex is a commercial spot rather than a
sports facility.

"The residents will not accept the plan if the administration
insists on building commercial outlets. Just imagine, 62
commercial outlets built on a plot of land that is supposed to be
used for public facilities. What will the public get (out of
this) other than trouble?" he said.

View JSON | Print