Senayan management draws up new land use contracts

JAKARTA (JP): The management of Senayan sports complex has set a Nov. 12 deadline to finish drafting new contracts which it will refer to in a series of negotiations with 14 companies now occupying its land.

Vice chairman Agung Laksono said on Friday that a team of three experts are drawing up the contracts that will enable the management to extract more money from tenant companies on its land.

The team consists of renowned banking analyst I Nyoman Moena, economist Winarno Zein and the assistant to the State Minister of Youth Affairs and Sports, Imam Sujudi.

"As soon as they finish with the contracts, we'll ask our legal and business consultants to start negotiations," said Agung, who is also the State Minister of Youth Affairs and Sports.

The management has appointed the University of Indonesia's Finance Management Institute as its business consultants and Nono Makarim Association as its legal consultants.

"We have to work fast. We don't have much time left," Agung said.

Agung said on Wednesday that Hotel Mulia Senayan topped the priority list of companies targeted in the bid to raise more revenue. Under the present contract, the five-star hotel which accommodated participants of the 19th Southeast Asian Games here last year is obliged to pay the Senayan management a mere Rp 90 million in annual royalties.

The other 13 companies targeted are PT Senayan Trikarya Sempana (the owner of Plaza Senayan), PT Senayan Trikarya Graha (Senayan Apartments and Offices), PT Adya Bintang (now constructing a hotel), PT Sinar Kemala Intermetro Golf (Senayan golf course), PT Adil Andaru (Senayan golf driving range), PT Lingga Hamparan Krida (Hotel Atlet Century Park), PT Rajuli Adi Senayan (now constructing a McDonald's restaurant), PT Indobuildco (Jakarta Hilton Convention Center and Jakarta Hilton International Hotel), PT Waskita Mustika Indah (now constructing Senayan Tower), Senayan Holding Pte. and PT Wantas Perkasa Waya (project postponed), PT Terminal Builders (Panin Bank Building) and PT Ratu Sayang (Ratu Plaza).

A source who requested anonymity said on Friday that the Senayan management had earned only Rp 150 billion (US$16.7 million) in royalties since it first leased plots of land out to private companies almost 30 years ago.

"That's not enough," he said, adding that the funds had been under the exclusive control of executives on the management committee. (yan)