Mon, 20 Oct 1997

Overlapping in Jakarta bay supervision vexes councilor

JAKARTA (JP): A city councilor expressed concern over the approval by the Ministry of Transportation of its management of a private company's reclamation project in Jakarta Bay without any consultation with the city administration.

Lukman Mokoginta, a member of Commission D for development affairs, said over the weekend that PT Manggala Krida Yudha, one of the developers, had been allowed to manage 375 hectares of a 500-hectare reclamation project and gave the rest to the firm's partner -- state-owned port company PT Pelindo II.

The 500-hectare reclamation project, called Ancol Baru -- which will be developed into a business, commercial and residential area -- is part of a larger reclamation project covering 2,700 hectares.

Lukman stressed the importance of an immediate settlement in the overlap of authority between the Ministry of Transportation and BP Pantura (the project's supervision board) in the supervision of the reclamation project in the bay.

"Based on an existing law, the municipality has superior legal authority to run the project," he said.

Presidential Decree No. 52/1995 on the reclamation of Jakarta Bay stipulates that the supervision and control of the project is in the hands of the Jakarta governor.

Government Regulation No. 70/1996 also supports the legal right of the city to manage the development project, stipulating that the ministry has certain authority, but every change within the area must be consulted with the city administration, Lukman said.

Some developers reportedly have also signed similar agreements with the Ministry of Transportation without involving the municipality, Lukman said.

He urged the ministry to review the agreements, because they violated existing regulations.

The ministry's collection of fees and processing of permits for developers, Lukman said, must also stop or be consolidated with BP Pantura.

"The city, which is in charge of supervision and control of the reclamation project, must act according to its original function," he said.

"So I urge the developers to stop paying fees to the ministry, until a clear settlement is reached," Lukman added.

"The most important thing here is to settle coordination procedures between BP Pantura and the Ministry of Transportation so as to eliminate the overlap," Ali Wongso Sinaga, head of Commission D, said.

Last May, Manggala Krida Yudha awarded Hyundai Engineering a US$110 million contract to complete the reclamation project.

Other developers licensed in the reclamation project include PT Mandira Permai, PT ISMAC, PT Jaladri Karyika Eka Paksi and PT Kapuk Naga Indah.

Mandira Permai's project, called Pantai Indah Kapuk waterfront project, is expected to be completed in 2002.

Another project being handled by PT Kapuk Naga Indah, a subsidiary of the Salim Group, is reclaiming 674 hectares in the western part of Jakarta Bay. (07)