Pontjo Sutowo Loses Appeal at Administrative Court; What Now for Hotel Sultan?
Jakarta - The High Administrative Court (PT TUN) has overturned its previous ruling in a case brought by PT Indobuildco, represented by Pontjo Sutowo, concerning the management of Hotel Sultan.
The ruling was issued on Thursday, 26 February 2026, numbered 13/B/2026/PT.TUN.JKT. This strengthens the government’s legal foundation in the process of salvaging and restructuring state assets in Block 15 of the GBK Complex.
“This appeal ruling overturns the first instance decision and declares the lawsuit inadmissible. Therefore, there is no longer any administrative basis that can be used to challenge the process, which has a strong legal foundation,” said Kharis Sucipto, Legal Counsel for the Centre for Management of the Gelora Bung Karno Complex (PPKGBK), in an official statement on Monday, 2 March 2026.
Previously, two legal proceedings were taking place concerning this dispute. In addition to the PT TUN ruling, the Central Jakarta District Court (PN Jakpus) issued a decision requiring Indobuildco to vacate the entire Hotel Sultan area and pay the state royalties valued at US$45.36 million.
On the other hand, the PT TUN Jakarta had previously accepted PT Indobuildco’s lawsuit, represented by Pontjo Sutowo, against the Minister of State Secretariat regarding Hotel Sultan land. From that ruling, PT TUN had invalidated the State Secretariat documents that had previously formed the basis for GBK’s claims against Indobuildco.
Currently, according to Kharis, the latest PT TUN ruling accepts the government’s argument that the notice concerning royalty payment obligations and land evacuation falls within the realm of civil law and is not within PT TUN’s jurisdiction.
Regarding the matter of guarantee funds in the execution process, Kharis emphasised that PPKGBK has no legal obligation to deposit guarantee funds.
PPKGBK Chief Executive Rakhmadi Afif Kusumo stated that this ruling strengthens the legal clarity that existed previously.
“PPKGBK is obligated to ensure that state assets are managed in accordance with applicable laws and regulations for the greatest public interest,” Rakhmadi said.
Government to Take Physical Steps
With this ruling in place, the government will now take physical steps in the field to liberate Block 15 of the GBK complex, which includes Hotel Sultan, from PT Indobuildco’s control.
“With the complete collapse of all of Indobuildco’s legal defences, the government is now simply counting down the days. The government will soon take physical steps in the field to ensure that Block 15 is freed from illegal occupation and fully returned for public benefit,” the statement read.
The Secretary of the State Secretariat Ministry, Setya Utama, also indicated willingness to provide opportunities for former employees to join the new management that will oversee the area.
“The state is ready to be present and will embrace the employees. We fully understand the concerns of the workers and invite them to join in the transition management that we are preparing,” Setya said.
“This dispute is between the state and a corporation that no longer has management rights and has not paid royalties, not with its workers. Employee welfare is part of our commitment in this revitalisation going forward,” he added.