Rp 8.2b used to clear brothel land

JAKARTA: City Administration claimed on Friday to have used Rp 8.2 billion (US$820,000) for the acquisition of 5.6-hectare land and buildings at former Kramat Tunggak brothel complex in North Jakarta.

Speaking in a press conference at the City Hall, Deputy Governor for Social Welfare Affairs Djailani admitted the owners of the properties have no land ownership certificates and building permits.

"But they have bills stated that their land were bought from the administration in 1970s and the mayoralty ordered them to build the buildings at that time," Djailani said.

He denied that the administration had acquired the land twice in 1970s worth Rp 5 million and one year after the brothel was closed in 1999.

North Jakarta Mayor Soebagyo admitted that according to the government regulation the owners should only receive 20 percent from the price stated in the property tax (NJOP) since they do not have any certificates.

"But after a long discussion with the owners, we agreed to pay 90 percent from the (NJOP) since they have the bills," Soebagyo said.

He said the market price in the area was Rp 2.5 million per square meter while the NJOP was Rp 1 million.

He said the buildings were paid between Rp 300,000 and 400,000 per square meter since many of them are two story-buildings.--JP