Indonesian Political, Business & Finance News

On the Fate of the Disputed Tanah Abang Land, Minister Ara Firmly States This

| Source: CNBC Translated from Indonesian | Social Policy
On the Fate of the Disputed Tanah Abang Land, Minister Ara Firmly States This
Image: CNBC

Minister of Housing and Settlement Areas (PKP) Maruarar Sirait has emphasised that the disputed land in Tanah Abang, Central Jakarta, is state-owned property belonging to PT Kereta Api Indonesia (Persero) or KAI, despite a lawsuit filed by the heirs of Sulaeman Affandi along with the Gerakan Rakyat Indonesia Baru (GRIB) Jaya over the land.

The minister, often referred to as Ara, made this assertion following explanations from the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN), confirming that the land is indeed state property.

“We state that the land is state land. The basis has been explained by the Ministry of ATR/BPN, and I have also checked; ultimately, it is indeed a state asset,” Ara stated firmly after inspecting the renovation of unworthy houses (RTLH) and the revitalisation of slum settlements in Menteng Tenggulun, Central Jakarta, on Friday (24/4/2026).

She is confident that the land can be used for the state’s interests in serving the public, particularly for those without adequate housing.

“So, I believe we are very confident that it is a state asset, and of course, we will use it for the state’s interests. As per President Prabowo’s directive, how the homeland is used for the benefit of our people,” she continued.

Ara explained that the land will still be developed with 1,000 subsidised rental housing units (rusun), with the construction funded by the corporate social responsibility (CSR) programme of PT Astra International Tbk.

“Well, the plan there is to build 1,000 rusun units funded by Astra’s CSR. So, this is an extraordinary collaboration: the land is state land, in this context belonging to KAI, but the builder is Astra,” she clarified.

Furthermore, each rusun unit will consist of two bedrooms, meaning that with this subsidised rusun, up to 4,000 people can obtain decent housing.

“So, if it’s 1,000 rusun units, assuming two rooms per unit, roughly 4,000 people can be accommodated there,” she explained.

Regarding the scheme and allocation for whom the subsidised rusun is intended, her side is still discussing it with relevant parties.

However, there is a possibility that the rusun will be built for low-income communities (MBR) and moderate-income communities (MBT).

“We will discuss later who it is for, what the scheme is like. We will take it slowly on how our state assets can be used for the state’s interests and for the benefit of our people. Whether for MBR, and in Jakarta, there are quite a few MBT. So, we will also prepare regulations for our MBT friends so they can enjoy decent housing,” she elaborated.

For information, the land dispute in the Tanah Abang area has entered a new phase after the official lawsuit was filed at the Central Jakarta District Court (PN Jakpus) by the legal representatives of the heirs and GRIB Jaya.

The legal team of the heirs and GRIB Jaya is suing for the land under case number 241/Pdt.G/2026/PN Jkt.Pst, classified as an unlawful act (PMH).

The first hearing is scheduled for Monday (27/4/2026).

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