PTUN Jakarta Rejects Pontjo Sutowo's Lawsuit Over the Sultan Hotel

Jakarta — The Jakarta High Administrative Court (PTUN Jakarta) has annulled the first‑instance decision in a dispute over a demand‑letter case concerning land formerly held under the building use right (HGB) in the Gelora Bung Karno (GBK) complex in Central Jakarta, the site of the Sultan Hotel.

In Decision No. 13/B/2026/PT.TUN.JKT, the panel of judges granted the appeal filed by the State Secretariat of the Republic of Indonesia as Appellant I and the Bung Karno Sports Complex Management Center (PPK GBK) as Appellant II.

The panel then nullified the Jakarta Administrative Court’s Decision No. 221/G/2025/PTUN.JKT of 3 December 2025.

The panel stated that PT Indobuildco’s suit as the Appellee (Terbanding) was not admissible.

Previously, PT Indobuildco challenged three demand letters issued by the State Secretariat Ministry, namely:

In the first-instance decision, PTUN Jakarta granted PT Indobuildco’s claim in full, ruled that the three letters were void, and ordered the defendants to withdraw the letters in question.

However, on appeal, the panel found that the subject matter of the dispute arose from civil‑law relations between the parties. The panel considered that the dispute originated from a civil contract related to the utilisation of the ex‑HGB No. 26/Gelora and ex‑HGB No. 27/Gelora. In the demand letters, the State Secretariat Ministry asked PT Indobuildco to vacate the land and pay royalties of US$45,356,473 for the period 2007–2023.

Because it was deemed a civil action, the panel stated that the subject matter did not fall under the definition of a decision of an Administrative Court that can be reviewed by the administrative court.

With the acceptance of the absolute competence exception, the panel stated that PTUN had no jurisdiction to hear and adjudicate the case.

The decision was issued in the panel’s deliberation on 23 February 2026 and announced in an open session for the public online on 26 February 2026.

The Pontjo Sutowo‑owned company PT Indobuildco sought a security deposit if required to vacate the Sultan Hotel in the GBK area.

This followed a civil case ruling, No. 208/PDT.G/2025/PN.JKT.PST, in which PT Indobuildco sued the Minister of State Secretariat; the decision held that the land property dispute in the GBK area favored the state.