'Nearly all developers violate regulations'

Ahmad Junaidi, The Jakarta Post, Jakarta

City Council announced on Tuesday that more than 90 percent of developers in the city have violated regulations, requiring them to set aside 40 percent of their space for public and social facilities.

Deputy chairman of the council commission D for development affairs Ali Imran Hussein, urged the city administration to take legal action against the offending developers.

"The administration should not hesitate to sue the developers although some former top officials are behind them," Ali, of the United Development Party, said, after a hearing with the South Jakarta mayoralty.

According to Law No.4/1992 on housing and settlement, a housing developer should set aside 40 percent of its space for public and social facilities, such as parkland.

Developers who violate the law could face a maximum sentence of 10 years in jail and/or a maximum fine of Rp 100 million (US$10,000).

According to city Bylaw 240/1995, shopping center developers are also required to provide 20 percent of their space for small enterprises.

However, Bylaw No. 241/1995 states that developers can pay compensation to the administration if they are unable to accommodate small businesses. The administration is then expected to use the compensation money to accommodate the small businesses elsewhere.

Ali revealed that only 10 percent of 548 developers in South Jakarta have paid compensation of Rp 1.9 trillion, while the remaining 90 percent have yet to pay compensation amounting to more than Rp 20 trillion.

"If they had all paid us then we would not have to complain about not having enough money to finance flood control projects," he said.

The mayoralty's secretary, Dadang Effendy, who is also the mayoralty's development control and supervision team head, promised to take stern action against the developers.

"But I was just installed in this post last month. So give me some time to study the matter," Dadang said in the hearing.

The mayoralty's data showed that the developers, which have yet to fulfill the administration's requirements, include PT Danayasa Artatama owned by businessman Tommy Winata.

PT Danayasa, which developed Sudirman Central Business District with prestigious buildings, such as the Jakarta Stock Exchange and Bank Artha Graha, was considered "untouchable" after some retired army generals become the company's commissioners.

Another developer, which was owned by former city governor Tjokropranolo, had also not paid compensation for its shophouse complex on Jl. Benda, Cilandak, South Jakarta.

PT Metropolitan Kencana, which developed the luxurious housing complex Pondok Indah, reportedly also did not fulfill its obligation for public and social facilities.

Councillors have been demanding for years that the administration take stern action against violating developers or demolish certain illegal buildings.

But it is believed the demands of councillors were weakened after developers "discussed" the matter with the administration and councillors.

On Tuesday, councillor Ali demanded that South Jakarta mayoralty demolish Apartment Executive Paradise on Jl. TB. Simatupang for not possessing any building permit.

The mayoralty's officials promised to investigate whether the apartment developer had violated the regulation.

During the council's hearing with the West Jakarta mayoralty last week, it was also found that almost all developers in the mayoralty had not paid compensation.