Planned expansion of Pulogadung estate hits snag

JAKARTA (JP): Budgetary constraints have hampered the city administration's plan to expand the Pulogadung industrial estate, an official said Saturday.

The city administration intends to acquire up to 950 hectares of land on the eastern outskirts of Jakarta, but up to now it has only been able to acquire 100 hectares. Of the 100 hectares, only 44 hectares have been built on.

"Currently, 18 out of the 44 hectares are small-scale industrial centers," Assistant to the City Secretary Prawoto Danoemihardjo said over the weekend.

Prawoto acknowledged that it is difficult to expand the estate as initially planned, largely due to financial problems.

Another problem which hampers the plan is the fact that most of the land in the area is controlled by private companies, including PT Cakra Sarana Persada.

Prawoto said that to overcome the problem, the city administration has united with PT Cakra Sarana Persada to build low-cost housing for several thousand workers of small-scale industries in the area.

"The city administration does not have enough funds to develop the area, such as to appropriate the land. The cooperation is a way to overcome the problem," Prawoto said.

About 30 of the 80 hectares of land needed for the housing project will be provided by PT Cakra Sarana Persada and 40 hectares by the city administration. The rest will have to be appropriated from residents.

Prawoto said that the city administration does not have to provide additional funds for the building of the housing, which will be managed by the Pulogadung Authority.

He explained that with the joint venture project the authority is expected to earn a profit which will then be used to develop the small-scale industrial center.

He said the private company will finance the project, including the appropriation of about 20 hectares of land owned by local residents.

Prawoto said that according to the city planing, the area is earmarked for residence, not as an industrial site. The company will build modest houses as well as low-cost apartments.

"Workers who work in the industrial areas can buy the houses at reasonable prices so they will not have to spend their money on transportation," said Prawoto.

Prawoto said the plan will be carried out as soon as possible after a permit from the City Council is obtained.

The city administration foresees no problem with the compensation for the residents' properties, he added.

"The company can offer them to trade their land with a house in the area. Basically it will not cause a problem if every party sticks to the regulation," Prawoto said.(yns)