Plan to sell plot of land in Kemayoran questioned
Plan to sell plot of land in Kemayoran questioned
JAKARTA (JP): City councillors questioned on Tuesday the city-
joint venture exhibition firm PT Jakarta International Trade
Fair's (JITF) plan to sell 10 hectares of land in Kemayoran,
Central Jakarta, at a price of about Rp 300 billion (US$30
million).
Councillor Ugiek Sugihardjo of the Indonesian Democratic Party
of Struggle demanded that the sale be postponed and JITF audited.
"For us it's like insider trading. It's the people's land,"
Ugiek said in a hearing between the council's commission B for
economic affairs and the company's executives.
During the hearing, JITF's president Edward Soerjadjaja
admitted that the company planned to sell the land to cover the
company's debt, which amounted to Rp 1.5 trillion.
"The debt was inherited by the company's former management as
well as the depreciation of the rupiah during the economic
crisis," Edward said.
He denied the planned sale of the land surrounding former
Kemayoran airport violated procedures as the land belonged to the
company.
He further contended that the sale would be beneficial to the
company as the $300 per square meter price is higher than the
current estimated market price of $100 per square meter.
JITF reportedly owes $26.3 million and 8.7 billion Japanese
yen to a Japanese consortium.
The company is 42.5 percent owned by a Japanese consortium,
52.5 percent owned by PT Jaya Nusa Pradana and the remaining 5
percent owned by state-owned Kemayoran Management Body (BPL).
PT Jaya Nusa Pradana is 75 percent owned by Edward's firm PT
Griya Nusa Pratama and 25 percent owned by city-owned Pekan Raya
Jakarta foundation.
BPL, which is under the supervision of the State Secretariat,
contributed 40 hectares of land in Kemayoran to get its 5 percent
share in the company.
The insider trading accusation rose as JITF planned to sell
the 10 hectares of land to none other than Edward's own firm PT
Griya Nusa Pratama.
Commission B deputy chairman Zulkarnain Ginting also insisted
that the sale be shelved and a company audit be conducted.
"Since the JITF is still partly owned by the city
administration, the planned sale of the land must be discussed
first by the council," Zulkarnain, of the United Development
Party, told reporters.
He said the council agreed to set up a special committee to
discuss the planned sale and audit the JITF. (jun)