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)