Indonesian Political, Business & Finance News

Land dispute dogs terminal project

| Source: JP

Land dispute dogs terminal project

TANGERANG (JP): Unsettled controversy over compensation money
for land and buildings is feared to hamper the ongoing
construction project of an integrated terminal in Cipondoh
district to replace the existing one in Cikokol.

Dozens of residents in Poris Plawad village who are affected
by the project have insisted that they will not move until the
Tangerang mayoralty administration complies with their demanded
compensation of Rp 300,000 (US$31.6) per square meter of their
properties.

"We do not intend to disrupt the government project, but the
compensation offered by the project committee to us is so low
that we are afraid we cannot afford to buy replacement houses," a
respected resident, Saad, 50, said on Wednesday.

He said the land transfer committee had offered a mere Rp
150,000 per square meter of land and buildings belonging to some
400 families affected by the project.

Assistant to mayor Herry Mulya Zein, who is former Cipondoh
district chief, said on Thursday the mayoralty administration and
the village residents had settled the dispute and agreed to set
the compensation money at Rp 200,000 per square meter.

"We asked for their understanding that they release their
properties at a lower price in the public interest," Herry said.

The new terminal will stand on a five-hectare plot. The
project costs Rp 23 billion and is funded by a government loan
from the Asian Development Bank. Begun in October last year, the
project is expected to be completed by the end of 2002.

Spokesman for the mayoralty administration Herri Kusnadi said
the existing terminal in Cikokol could no longer accommodate all
incoming buses and other public transportation as part of its
plot had been cut off for a fly-over project nearby.

In response to the dispute, deputy speaker of the mayoralty
council Burhanuddin suggested that the local government pay the
compensation based on the government estimated land and building
prices, which range between Rp 200,000 and Rp 250,000.

"We promise to help the residents fight for their rights. The
committee should have not set the price for their own benefit,"
Burhanuddin said. (41)

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