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.