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)