Indonesian Political, Business & Finance News

Municipality not to revoke PT CSU permit

| Source: JP

Municipality not to revoke PT CSU permit

JAKARTA (JP): Governor Surjadi Soedirdja said that the city
administration will not revoke the land use permit of the company
developing the Taman Rasuna apartments. The developers have
violated certain regulations by illegally demolishing state-owned
property.

"Revoking the permit will only cause more trouble, but we must
still penalize them for having violated the regulation," Surjadi
told reporters at the City hall yesterday.

He explained that his office was still deciding how the
developer is to be punished. "Right now the most important thing
is to provide the children of a nearby primary school with a
better studying environment. We hope to do this soon by moving
them to another place," Surjadi said.

PT Catur Swasakti Utama (CSU) illegally appropriated state-
owned properties, including several elementary school buildings
and an unoccupied 6,000-square-meter plot.

PT CSU is controlled by Bakrie Investindo, a holding
corporation of the Bakrie business group, whose major shareholder
is Aburizal Bakrie, the chairman of the Indonesian Chamber of
Commerce and Industry (Kadin).

Kurniasih, the headmaster of one of the schools, said earlier
that 334 of her pupils had abandoned the school building and
moved to two other nearby schools. The project had produced thick
dust and noise, posing serious health problems to the students.

PT CSU said that they only demolished the two elementary
school buildings within the 3.7-hectare area because the physical
conditions of the buildings were so bad that they could have
tumbled down anytime, particularly with the workers starting to
use heavy equipment.

The developer is building one 4,000-apartment unit in the
strategic area, popularly known as the Golden Triangle.

The company claims that it was preferable to build temporary
classrooms and to demolish the aging school buildings.

Executives at the developing company have admitted that they
made a mistake in tearing down the old school buildings without
first asking for an official permit from the city administration.

Hope

Deputy governor for Economy and Development affairs Tb. M.
Rais hopes that the mayoralty officials do their job in
controlling and keeping the developers to their obligation.

"The supervision team in each mayoralty should do their job as
they already have the given authority to do so and the municipal
administration can not do the job alone," Rais told reporters
yesterday.

He pointed out the fact that many developers have failed to
meet their obligations, such as by demolishing municipal
properties without a permit and for failing to build social and
public facilities.

"Supervision officials should be stricter when doing their
jobs," Rais said.

Meanwhile the city administration has ordered PT CSU to move
its cement mixing plant 500 meters away from a nearby school
building to protect students from the dust and noise coming from
the plant. (yns)

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