Mulia seizure order withdrawn

JAKARTA: The Central Jakarta District Court withdrew on Wednesday its decision to seize Hotel Mulia Senayan after the hotel paid its Rp 15 billion (US$ 1.7 million) debt to the city administration.

Judge Andi Samsan Nganro said the withdrawal was made after lawyers from both parties told the court that the dispute between them was settled, just before the court planned to seize the hotel on Thursday.

It issued a ruling on May 31 to seize the five-star hotel, selling it at auction and handing over Rp 15 billion from the sale to the administration.

The Supreme court had earlier ordered the hotel to pay the Rp 15 billion fine to the city administration over a building permit violation as the developer had constructed a 40-story building instead of the 16 permitted.

Construction of the hotel, located on Jl. Asia Afrika, Central Jakarta, in 1997, also drew criticism as it was built on a site that was formerly a green area. --JP