Megawati under fire over Kemayoran project

Megawati under fire over Kemayoran project

Ridwan Max Sijabat, The Jakarta Post, Jakarta

The adage that power, money and guns are three key elements that
work in synergy with corruption, collusion and nepotism, has
taken a new shape in the current regime with President Megawati
Soekarnoputri's government awarding a Rp 1.3 trillion (US$164.7
million) real estate mega-project to her own family.

The Kemayoran issue surfaced early in November after the
President's eldest son Mohammad Rizky Pratama, better known as
Tatam, made a deal with a businesswoman from China to build a
real estate project on a 14-hectare plot of state land at the
former Kemayoran airport in Central Jakarta.

Political parties and politicians, caught the issue in an
attempt to discredit the government, Megawati and the Indonesian
Democratic Party of Struggle (PDI Perjuangan) she chairs. The
main allegation was that Tatam had used his status to win the
government's favor without a tender that should have been offered
to the public.

Effendy Choirie, a legislator of the National Awakening Party
(PKB) lambasted Megawati for her inconsistency in running her
administration, saying that the country's founding president's
daughter had failed to set a good example on how a national
leader should behave and, therefore, the people should no longer
elect her in the first ever direct presidential election next
year.

"Megawati is a woman of inconsistency... Many people had high
hopes in Megawati when she said before coming into power that she
wouldn't give access to her family to do business, using her
influence. But, now, what we are seeing is that she has
transgressed that," Effendy told The Jakarta Post recently.

He underlined that the President had not violated any law but
had breached political ethics and that such a move would open
room for violations of the law in the project's implementation in
the future.

"Many have questioned Megawati's political commitment to
fighting corruption, collusion and nepotism," he said.

The people had opposed Soeharto and his regime because besides
being authoritarian, he gave many development projects to his
cronies and his children.

Noted corporate lawyer Todung Mulya Lubis shared Effendy's
view and said that Tatam's involvement in the Kemayoran mega-
project could have a negative impact on the image of Megawati and
her party just because despite the project's investment
interests, the President had given Tatam her blessings to do such
business.

"No laws have been violated, but such a move is really against
social and political ethics. Megawati in her capacity as
President should put aside her individual rights and that of her
family during her tenure to show the public good governance and
that she opposes collusion, nepotism and corruption," he said.

Effendy, also deputy chairman of the ad hoc team of the House
of Representatives' Commission I dealing with defense, foreign
affairs and the state secretariat, said his team would
immediately summon State Secretary Bambang Kesowo in his capacity
as chairman of the Kemayoran New Town Authority (DPPPKK) to
clarify the Kemayoran issue.

He confirmed that the summons was part of the ad hoc team's
main task to investigate collusion within the state secretariat
and presidential palace. Previously, the team has investigated
Megawati's financial sources for the Rp 30 billion renovation of
the military and police barracks, the alleged mismanagement of
the Senayan Sport Stadium and the alleged irregularities in the
recent purchase of Russian-made Sukhoi warplanes and helicopters.

Denying the allegation of collusion, State Secretary Bambang
Kesowo fell short of saying whether Tatam would have won the
project without his influence as a member of the first family.

According to the joint agreement between the Chinese
businesswoman and PT Theda Persada Nusantara before a public
notary in August, the company was formed in January 2003 with
Tatam as deputy president commissioner.

Abdul Muis, director of the DPPPKK, questioned certain sides
who have raised the TPN issue since it was the 58th company to
invest in the Kemayoran township.

"So far, 57 local and foreign investors have invested in the
state land but no questions have been raised," he said, adding
that investors were not required to invest through public tender
but to comply with Kemayoran's master plan that has been set in
accordance with Jakarta's spatial zoning.

He said the people should thank TPN for its success in luring
a Chinese businesswoman to invest in the country and that the
government had suffered no losses in the project.

He however conceded the state had not generated any income
since the 410-hectare plot of land was taken over from state firm
Perum Angkasa Pura in 1985.