State secretary defends project of President's son
State secretary defends project of President's son
The Jakarta Post, Jakarta
State Secretary Bambang Kesowo defended on Wednesday the decision
to grant President Megawati Soekarnoputri's son Mohammad Rizki
Pratama rights to develop and manage a 17-hectare lot at the 40-
hectare Kemayoran fairground complex, saying it was not in
violation of law.
Bambang also stressed that he had known from the very
beginning that Pratama, or Tatam as he is known, was involved in
a project to develop a plot of land in Kemayoran, Central
Jakarta.
"If he (Tatam) runs his business without taking any concession
or selling state assets, but instead encourages foreign investors
to invest, then why not?" Bambang said in a hearing with the
House of Representatives Commission I, which is responsible for
the State Secretariat, among other things.
Tatam, through PT Theda Persada Nusantara, has acquired the
right to develop and manage 17 hectares of land at the Kemayoran
fairground complex. The details of the project, however, remain
unclear.
According to Bambang, Tatam had originally planned to build
high quality apartments, a shopping center and a hypermarket
worth up to Rp 6 trillion (US$750 million) on a 30-hectare lot in
Kemayoran.
However, after due assessment the Kemayoran New Town Authority
(DPPPKK) granted the company the right to develop only 17
hectares with the total project value being Rp 1.6 trillion.
Bambang, who is legally in charge of the Kemayoran fairground
complex, did not explain why Tatam had only been granted 17
hectares.
PT Theda signed an agreement with Li Zhaoling (Chinese
businessperson associated with the Beijing Returned Overseas
Chinese Federation Partners) on July 29 to develop the site.
Lawmakers had criticized the selection of Tatam's company to
develop the land, saying that the project should have been put
out to tender.
Legislator Effendy Choirie of the National Awakening Party
(PKB) has suggested that preferential treatment had been given to
Tatam by his being allowed to control and develop the site in the
Kemayoran commercial district without a public tender being held.
Some investors, including PT Astra and Pepabri (the
association of retired military officers), had also submitted
proposals but later withdrew them for unknown reasons.
Bambang emphasized that a public tender was not needed for a
company which intended to develop a project. Currently, there is
no law regulating the use of state assets.
He said that the Kemayoran complex was a state asset allocated
for business, commercial information (Jakarta International Trade
Fair), housing, and other supporting infrastructure, including
shopping malls.
Like the Bung Karno Sports Compound, the Kemayoran fairground
complex comes under the responsibility of the state secretary.
Bambang said Tatam did not do the negotiating himself. "The
negotiations were conducted by officials at director level in the
company," he said. Tatam is a member of the company's board of
commissioners.
According to Bambang, the 44-hectare site in Kemayoran is not
for sale, but investors are being encouraged to develop parts of
the commercial complex.
"They take 17 hectare. The price is Rp 3 million per square
meter," Bambang said, adding that the market price was Rp 2.5
million per square meter.
Bambang said that the price of the land will determine how
much money will be contributed to the state once the developments
have been completed.
The state secretary criticized lawmakers who accused the
President of nepotism.
"We should not engage in character assassination without
making a clear assessment of the issue," he said.
Several legislators suggested that the President should tell
her son to quit the project for ethical reasons.