MOU on Ancol Baru project signing

JAKARTA (JP): The city administration signed yesterday a memorandum of understanding with PT Manggala Krida Yudha for the early construction of the Ancol Baru project.

Manggala -- a private firm owned by President Soeharto's youngest daughter Siti Hutami Endang Adiningsih -- has been allowed to reclaim 500 hectares of the 2,700-hectare plot designated for the reclamation project in Jakarta Bay.

The Ancol Baru project will be developed in cooperation with the state-owned port management company, PT Pelindo II, and become a business, commercial and residential area.

Last May, Manggala awarded the Hyundai Engineering company a US$110 million contract to complete the reclamation project.

Among the contractors licensed for the bay project are PT Mandira Permai, PT ISMAC, PT Jaladri Karyika Eka Paksi and PT Kapuk Naga Indah.

The Pantai Indah Kapuk waterfront project, being developed by Mandira Permai, is expected to be completed in 2002.

Another project held by PT Kapuk Naga Indah, a subsidiary of the Salim business group, is restoring 674 hectares in the west part of Jakarta Bay.

Deputy Governor TB.M. Rais said yesterday that he hoped the reclamation project in Jakarta Bay will, in return, provide a better quality environment for Jakarta.

"The city will maintain its control over the project with BP Pantura (Jakarta Bay Supervision Bureau) ensuring two important goals are achieved," he said.

"First, to have good quality reclamation, which means that we can reduce its environmental impact, and second, to make the reclamation project and the city's development an integral plan." (07)