Residential area demolition postponed

Residential area demolition postponed

JAKARTA (JP): The City Council has postponed the demolition of
residents' houses in Kebon Kacang, Central Jakarta, as
negotiations between councilors and the private developer behind
the demolition are underway.

"But we still need to know whether there are plots of state
land on the site, for which the demolition order would be
effective," M. Aman, chairman of Commission A for government
affairs said yesterday.

The postponing of the order, issued by the City Council last
week, was against the mayoralty order, which backs a plan by the
developer -- PT Asia Troika -- to build a five-star hotel in the
area.

Aman repeated earlier statements by councilors that the mayor
does not have the right to issue a demolition order for a private
interest.

"We will meet Mayor Abdul Kahfi on Monday," Aman said after
meeting with the management of PT Asia Troika.

The mayoralty has ordered the demolition of 40 buildings,
including the homes of 19 families and one mosque, which occupy
2,000 square meters of land in the area.

The mayor was quoted in yesterday's edition of the Pos Kota
daily as denying the councilor's allegations of interfering in
land disputes for private interests.

Abdul Kahfi said his order was backed by a land use permit for
public facilities.

Aman said the results of the commission's meeting with PT Asia
Troika resulted in the management's statement that they would not
increase their offers of land compensation.

Residents owning certified land want Rp 5 million (US$2.17)
per square meter while those owning non-certified land want Rp 4
million per square meter.

The management said it could not go higher than Rp 2.5 million
per square meter for certified, and Rp 2.25 million for non-
certified land based on their feasibility study.

The management explained that it could not gain enough profits
for the benefit of the tourism industry if land compensation was
too high, Aman said. (anr)