No action taken against 'delinquent' developers

No action taken against 'delinquent' developers

Bambang Nurbianto, The Jakarta Post, Jakarta

Most developers who started projects between 1971 and 1998 have
yet to allocate a part of the land to the city administration for
public and social facilities as stipulated by law, but little has
been done by authorities to enforce the ruling.

Several city councillors questioned city officials on Tuesday
why they were not serious about securing the land for the
facilities when there was strong legal grounds to force
developers to fulfill their obligations.

"It is strange that they have not forced these developers to
allocate the land with such strong legal grounds," Ridho
Kamaluddin, the chairman of the United Development Party (PPP)
faction in the City Council, said.

"We are suspicious that there might have been some kind of
compromise," Ridho added, referring to the rampant practice of
corruption among officials.

Data from the city administration shows that between 1971 and
1998, there was a total of 2,619 projects developed by the
private sector, but the city administration has only secured land
from 593 projects.

Ali Imran Husein, a deputy chairman of City Council Commission
D for development affairs, estimated the value of land not handed
over to the city administration could reach Rp 20 trillion.

According to Law No. 4/1992 on housing and settlements, a
developer should set aside 40 percent of its space for public and
social facilities, such as green areas, roads, houses of worship
and sport fields.

Developers who violate the law could face a maximum sentence
of 10 years in jail and/or a maximum fine of Rp 100 million.

With City Bylaw No. 240/1995, shopping center developers are
also required to set aside 20 percent of the land for small
enterprises.

Commission D invited on Tuesday PT Duta Pertiwi, one of the
developers which had not provided land for social and public
facilities.

In 1994, PT Duta Pertiwi began building the Cempaka Mas Trade
Center on Jl. Letjen Suprapto, Central Jakarta.

The company was supposed to allocate 29,109 square meters of
land for social and public facilities, including the construction
of roads.

However, to date the allocation for these facilities consists
of 200 square meters.

The giant trade center occupies 95,532 square meters of land.

Commission D chairman Koeswadi said that during the hearing,
representatives from PT Duta Pertiwi claimed that they planned to
present the facilities in May, but the city administration was
not ready at the time. Officials from PT Duta Pertiwi, however,
failed to back the statement with relevant data.

"Therefore, the hearing has been delayed to June 23," Koeswadi
told the media after the hearing.

Koeswadi urged the city administration to be serious in its
handling of negligent developers.

He estimated that over the past five years, about 10 percent
of the projects had not been provided with land for public and
social facilities.

Compared to the time before 1998, Koeswadi said that the
present condition was better as the facilities had been clearly
marked on the maps of projects being developed.