Indonesian Political, Business & Finance News

Mayor makes good on warning, revokes permit

Mayor makes good on warning, revokes permit

JAKARTA (JP): East Jakarta Mayor Sudarsono said he would stop issuing new building permits and certificates for land appropriation to PT Quartalintas Sembada, the developer of the Concord 2000 luxury housing complex.

The measure was taken because the company has failed to fulfill its promise to build social and public facilities, including parks, schools, sports facilities and an office building for the mayor in the complex, Sudarsono told The Jakarta Post yesterday.

He said he has previously reminded the company of its responsibility to build the public facilities. "True, the developer has provided a 20,000 meter square plot of land for the facilities, but it has yet to build anything on the land."

Instead of building such facilities, the developer built its marketing office in the complex. The mayor said the developer would be given three months' to demolish the marketing office and build sports facilities instead.

The mayor refused to go into details as to what action would be taken against the developer if it continued to neglect its obligations.

This is the second time that city authorities have taken action against an errant housing developer for neglecting obligations to build social and public facilities.

Saud Rachman, a city councilor from Commission D, in charge of development affairs, urged the mayor to immediately stop the activities of the developer, until it begins to build the facilities, as required by the mayoralty.

"It seems to me that the company only thinks of the profit it will gain by building the exclusive housing complex," Saud said, after he and several other city councilors from the same commission inspected the complex.

He said the East Jakarta mayor should follow in the footsteps of North Jakarta Mayor Suprawito, who revoked building permits of PT Summarecon, a major housing developer, for its failure to comply with the bylaw on building social and public facilities.

Suprawito said on Thursday that his office was even considering revoking land appropriation permits now held by PT Summarecon and possibly even filing a law suit against the company for continuing to neglect its obligations.

"I really mean it, because Governor Suryadi Soedirdja has also called on city officials to be firm against errant developers," he emphasized.

The mayor disclosed that there are many "delinquent" housing developers based in his mayoralty.

"PT Summarecon is one of them," Suprawito said as quoted by Antara.

He said that actually he has repeatedly called on developers to comply with the regulation requiring them to build public facilities in each of the housing complexes they are building."It appears that my warnings always fall on deaf ears, on the part of the companies."

PT Summarecon Agung is a publicly listed company on the Jakarta Stock Exchange. It holds nine land appropriation permits for North Jakarta, enabling it to appropriate 307.6 hectares of land.

Mayor Suprawito said that as of next week all building permits issued to all developers, which have yet to comply with the regulation, would be withdrawn.

"Let's wait and see," he said, adding that he would not hesitate to take even harsher action against errant developers.

He pointed out that his office would take three steps to cope with the problem.

"We will revoke their land appropriation permits, stop giving administrative services to them and bring them to court," he stressed.

Suprawito said Governor Suryadi has fully supported his decision. (bas/31)

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