Indonesian Political, Business & Finance News

Pontjo Sutowo Rejects Execution of Sultan Hotel Building, Claims Dispute Only Concerns Land

| | Source: KOMPAS Translated from Indonesian | Legal
Pontjo Sutowo Rejects Execution of Sultan Hotel Building, Claims Dispute Only Concerns Land
Image: KOMPAS

The legal representative of PT Indobuildco, Hamdan Zoelva, has emphasised that the object of the dispute in the Sultan Hotel case concerns the land area of the Sultan Hotel, not the building or the hotel business. PT Indobuildco is the company that has been managing the Sultan Hotel located in the Gelora Bung Karno (GBK) area, Central Jakarta. According to him, the Sultan Hotel building is not part of a build, operate, transfer (BOT) scheme, so it cannot be directly executed or taken over. If the building is to be taken over or executed, there must be a legal mechanism and payment of compensation. In addition, Hamdan has previously stated that one of the reasons for PT Indobuildco’s objection is the existence of a Supreme Court Circular stating that the implementation of immediate decisions must be accompanied by security money. That security money, according to him, is to anticipate any losses that may arise in the future. Meanwhile, the amount of security money requested by PT Indobuildco is equivalent to the price of the entire Sultan Hotel property. “Just value the hotel building at how much, equivalent to the value of the hotel building,” said Hamdan when met at the Central Jakarta District Court on Monday (09/02/2026). Previously, he told Kompas.com that the security money or compensation deemed equivalent by them to the release of ownership of the Sultan Hotel to the government is worth Rp 28.292 trillion. PT Indobuildco requests a negotiation process before the execution of the Sultan Hotel is carried out. Hamdan said that in the civil decision Number 208 of 2025, the panel of judges did order the evacuation of the Sultan Hotel area. However, according to him, the judges also emphasised the importance of a fair resolution through negotiation and peace. He stated that this consideration aligns with the Judicial Review Decision Number 276 PK/Pdt/2011, which affirms PT Indobuildco’s rights as an investor that existed previously, including the investments that have been planted on that land. “That PK decision affirms that because Indobuildco’s rights as an investor existed previously along with the investments that have been planted, the parties should make efforts to resolve it through negotiation to achieve a fair outcome for both parties,” said Hamdan. According to the former Chief Justice of the Constitutional Court, the legal process of the case is not yet complete even though an execution order for the evacuation of the Sultan Hotel area has been issued by the Central Jakarta District Court. PT Indobuildco is also still filing appeals and cassation.

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