Salim subsidiary to reclaim N. Jakarta area

Salim subsidiary to reclaim N. Jakarta area

JAKARTA (JP): The Jakarta administration signed an agreement
yesterday with developer PT Kapuk Naga Indah of the Salim
business group for the development of a reclamation project in
North Jakarta.

The Kapuk Naga project will reclaim 674 hectares north of
Pantai Kapuk, which will take 15 years to complete.

The agreement was signed by Deputy Governor of Economic and
Development Affairs Tb.M. Rais and director of PT Kapuk Naga
Indah, Suryo Pronoto.

Governor Surjadi Soedirdja, who witnessed the signing, hailed
the agreement.

"The (various) reclamation projects (in North Jakarta) are
aimed at improving the city's appearance and at boosting the
prosperity of Jakartans," Surjadi said.

Reclamation north of Pantai Indah Kapuk was also very
important to preserve mangrove forests, he said.

Yesterday's agreement followed the signing of a memorandum of
understanding between the two parties in April.

Suryo declined to comment on the value of the project but said
preparations could begin soon, such as in selecting partners to
carry out the project and estimating the budget and material
requirements.

The actual reclamation, however, must wait until the
completion of an Environmental Impact Analysis report by the
contractor, according to chairman of the North Jakarta
Reclamation Implementation Board, M. Sidarta.

"The developer cannot start reclamation before completing its
environmental impact study," Sidarta told The Jakarta Post.

He said the developer had 24 months to comply.

"We will be very happy if the developer can finish it within
three months," he said, adding that he estimated it would take
between 12 and 18 months to complete the study.

Studies

Currently, Kapuk Naga Indah was conducting several studies,
including an estimate of the project's cost. "After completing
all requirements, they can start the project," Sidarta said.

Environmental groups have warned that the reclamation project
could upset the ecological balance of the shores of Jakarta and
result in worse flooding.

The Kapuk Naga Indah project is the third reclamation project
in North Jakarta.

The first is being carried out jointly by PT Manggala Krida
Yudha and state-owned port management company PT Pelindo II in an
area called Ancol Baru. Manggala Krida Yudha is controlled by
President Soeharto's youngest daughter Siti Hutami Endang
Adiningsih.

Another project, the Pantai Indah Kapuk waterfront, is being
carried out by PT Mandira Permai. (ste/07)