Municipality asked to punish PT Inti Utama Dharma over land

Municipality asked to punish PT Inti Utama Dharma over land

JAKARTA (JP): A city councilor has urged the city
administration to take firm action against PT Inti Utama Dharma
Real Estate, developer of the Cipinang Indah housing complex in
East Jakarta, because it has failed to build social facility, as
required by the municipality.

Member of the Council's Commission D, which oversees
development affairs, Saud Rachman said yesterday that the
developer has misused a 3,000 square-meter plot of land, which
was initially earmarked for a primary school.

"The city administration should investigate the East Jakarta
city planning office and the developer. The development should be
suspended and the city administration should impose a heavy
penalty," Saud told reporters yesterday after meeting with the
developer.

In short, he added, the developer should be held responsible
for its failure to honor its social obligations.

Saud explained that every change of land use should get a
permit from the governor. He said that he suspected there was
collusion between the developer and the East Jakarta office of
the city planning office, who issued the permit.

He said that Irsan Sutandinata, director of the company,
confirmed it had built 11 luxurious houses on the site, with only
one of those having a permit.

"This is strange and I suspect there was collusion between the
developer and the office," he said.

The city administration has granted the developer a permit to
appropriate about 116,466 square-meters of land in the Cipinang
Muara subdistrict of East Jakarta.

The city administration requires the developer to build
various social and public facilities, such as parks, schools
(kindergarten and primary schools) and gutters.

In 1993, the developer signed an agreement with Mas Sunaryono,
the then East Jakarta mayor, to build all the facilities on
47,839 square-meters of land, worth Rp 16.37 billion.

However, Saud said, the developer has only built facilities
which are important for the complex, such as roads, gutters and
water ducts, but failed to build other social facilities, such as
the school.

"The 1993 agreement stated that a square meter of land is
worth Rp 300,000. This means that the company owes Rp 900 million
to the city administration for the school building alone," Saud
said, adding there are other facilities which should be built by
the developer.

Commenting on Irsan's reaction, who said that this is the
usual action because many developers are implementing it, Saud
said that in changing the use of the land, Irsan is wrong because
this can only be done with the governor's approval.

Saud also said that by building luxurious houses, the company
has also violated the appropriation permit because, originally,
the permit was given to the company so that it could build modest
houses. (yns)