Slum area will be converted to housing and business complex

JAKARTA (JP): City-owned developer company, PD Sarana Jaya, plans to convert Pademangan, a North Jakarta slum area, into a business and housing complex for middle and low income people.

The company director, Kemal Basha said yesterday Jakarta Governor Surjadi Soedirdja had agreed to the plan but had not yet given written approval to the project which will start next year.

The new Pademangan complex will integrate middle and working class accommodation so residents can conveniently get to their offices and shops without having to travel far, Kemal said.

"Now, we are focusing on how to resettle the local residents to areas near the complex and provide them with better housing," he said.

He said the plan would not evict the 72,000 families in Pademangan because they would be resettled in nearby apartments.

Kemal said the project, which is expected to be completed in five to seven years, would cover a 190-hectare plot.

Estimating the company would spend Rp 1.25 trillion (US$530 billion) for the land, Kemal said the project would involve several private companies, which were not yet appointed.

PD Sarana Jaya, which has successfully developed several Jakarta housing estates, adopts the "estate management" concept which means several private developers are used each with different areas of expertise.

"There used to be only one developer for a project. Now, we expect to manage the project better with the new 'estate management' concept," he explained.

Kemal said the project was in line with the city administration's efforts to renovate Jakarta with projects like those in Mangga Dua and Kemayoran.

He said between 25 and 35 percent of the land would be used for public facilities including telephone lines, underground infrastructure and roads. (02)