'Nearly all developers violate regulations'

'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.