Patra Jasa takes huge losses from forced sales
JAKARTA (JP): PT Patra Jasa, a subsidiary of state oil and gas company Pertamina, said yesterday it had been forced to sell luxury houses to government officials at discounted prices over the past five years, creating a loss totaling Rp 45.2 billion (US$3.6 million).
Patra Jasa director and chief operating officer (CEO) Legowo Dradjad said his company had sold 16 of its 147 luxury houses in the Kuningan Village I, Kuningan Village II and Pertamina Oil Village housing complexes in Kuningan and Pancoran districts, South Jakarta, to officials at sharply discounted prices over the past five years on orders from former minister of finance Mar'ie Muhammad.
Legowo said Patra Jasa was forced to sell the houses at discounts up to 80 percent compared to prevailing market prices.
"We hope the government will no longer give us such instructions in the future," Legowo said.
"As a profit-oriented corporation, we never had intentions of selling any of the houses since leasing them is more profitable," Legowo said.
Legowo did not name any buyers, but sources say they include House of Representatives Speaker Harmoko, Minister/State Secretary Akbar Tanjung, former minister of education and culture Wardiman Djojonegoro, former minister of trade Satrio Budihardjo Yudono, Minister of Foreign Affairs Ali Alatas and former minister of health Sujudi.
Other buyers have been identified as Minister of Industry and Trade Rahardi Ramelan, former minister of tourism, post and telecommunications Joop Ave, former minister of transportation Haryanto Dhanutirto, former minister of mines and energy I.B Sudjana and Director General of Oil and Gas at the Ministry of Mines and Energy Soepraptono Suleiman.
Harmoko, who reportedly paid the most, bought a 372-square- meter (sqm) home with a land area of 1,000 sqm for Rp 3.09 billion, compared to a market price of Rp 3.48 billion.
Akbar bought his 398 sqm house on an 845 sqm plot for Rp 394.88 million, compared to the market price of Rp 3.4 billion.
Rahardi bought a 352 sqm house on a 1,152 sqm plot for Rp 917.57 million, compared to the market price of Rp 3.48 billion.
Sudjana bought two houses with a total land area of 2,321 sqm for Rp 1.64 billion, even though the market price would have brought in Rp 6.9 billion.
Legowo said Pertamina, the sole owner of Patra Jasa, backed up the transactions.
Akbar, who is also chairman of Golkar, earlier insisted that he did not feel guilty for buying his house at a discounted price since it was set by the Ministry of Finance.
"The price was set through an official mechanism," Akbar said.
Legislator Jusuf Rizal Tjokroaminoto, who sits on the House of Representatives Commission V for industry, mining, trade, manpower, cooperatives and the environment, however, said the transactions were against existing rules. He called on the officials to return the houses to Patra Jasa or make up the difference in price.
Legowo said Patra Jasa would not reclaim the houses or ask for additional payments, but hoped the government would stop giving similar instructions in the future.
"Let bygone be bygone. Let's see to the future," he said.
Legowo said Patra Jasa still had 131 houses for lease covering 10 hectares of land in the exclusive districts. Its customers include foreign executives, ambassadors and others who pay an average of $2,750 per month.
"The housing complex is a gold mine for us. We don't want to sell a single house to anyone," Legowo said, adding that the complex contributed 40 percent of the company's annual revenue.
Patra Jasa booked a net profit of Rp 10.2 billion last year.
Aside from houses, Patra Jasa also operates hotels across the country, including in Kuta, Semarang, Cirebon, Surabaya, Bandung, Anyer and Parapat. (jsk)