Indonesian Political, Business & Finance News

Legal, business consultants to study Senayan's assets

| Source: JP

Legal, business consultants to study Senayan's assets

JAKARTA (JP): The Senayan management board plans to hire legal
and business consultants to appraise all its assets, it was
announced on Friday.

State Minister of Youth Affairs and Sports Agung Laksono, in
his capacity as one of the board's deputy chiefs, said the
consultants' report would be presented in a plenary board meeting
scheduled for early December.

"Based on the report, we will decide whether to extend or
renegotiate our contracts with private companies which rent plots
under the board's control," Agung said after a meeting with the
board's executive director Yasidi Hambali.

"Our main goal is to brush aside nepotism, collusion and
corruption which might have occurred in the run-up to contract
signings, and maintain the complex's function as a sports
complex," he added.

Agung said the board had yet to name the consultants.

The Senayan management board, chaired by the minister/state
secretary, controls 279 hectares of land in Senayan, Central
Jakarta.

Most of the plots are dedicated to sports venues, and some of
them are leased to 10 private firms under leases of between 20
years and 40 years.

The companies are PT Kajima Overseas Asia, which occupies 20
hectares, PT Manggala Pratama (four hectares), PT Jakarta Country
Club (four hectares), PT Sinar Kemala Intermetro Golf (30
hectares), PT Adil Andaru (5.5 hectares), PT Lingga Hamparan
Krida (4 hectares), PT Rajuli Adi Senayan (3,300 square meters),
PT Indo Buildco (65,000 square meters), PT Wantas Perkasa Waya
(four hectares) and PT Waskita Mustika Indah (one hectare).

The board's secretary, Mardowo, who accompanied Agung in
Friday's meeting, said the board had sold its land outside
Senayan. On those plots now stand the Grand Hyatt, Hotel
Indonesia and the Tebet traditional market in Central Jakarta,
and the Jakarta Military Command base in Bintaro, South Jakarta.

"The plots were transferred to other parties because the
sports area in Senayan was more than enough," Mardowo said.

The board received cash compensation from the deal with the
owners of the Grand Hyatt, the only private company to receive a
plot. Mardowo declined to unveil the size of the sale, but said
the board had used the interest from the deposits on the money to
maintain its assets.

The board has received Rp 9 billion (US$995,000) of
maintenance funding from the state secretariat every year since
1989.

Yasidi said the 100-hectare sports complex was the second
biggest complex in the world after one in Sydney, which is 760
hectares and includes a national park.

Seoul only has between 50 and 60 hectares while Barcelona has
between 40 and 50 hectares. Both cities hosted the Olympic Games.

Yasidi said that due to the monetary crisis, the board's plan
to build a second indoor stadium in the east parking lot had been
suspended indefinitely. (yan)

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