Sultan Hotel Forcibly Evacuated, No Compensation for Indobuildco

The Central Jakarta District Court has determined the execution of the evacuation of Block 15 in the Gelora Bung Karno (GBK) area, including the site where the Sultan Hotel stands. This step follows a request submitted by the State Secretariat Ministry (Kemensetneg) together with the Gelora Bung Karno Complex Management Centre (PPKGBK). The determination was issued on 30 April 2026 and provides a legal basis for the government, in this case PPKGBK, to immediately carry out the evacuation of the area. Legal representative for Kemensetneg and PPKGBK, Kharis Sucipto, stated that the court’s decision regarding the Sultan Hotel dispute has clarified the state’s legal position in the process. “The court has declared this execution request legally valid, so the determination serves as the foundation for the state to immediately regulate and evacuate Block 15,” he said in a written statement, quoted on Wednesday (6/5/2026). Kharis added that all execution procedures have been carried out in accordance with applicable provisions, from the aanmaning process to constatering. “All procedural stages have been executed according to regulations, so now we are just awaiting the on-site execution after inter-agency coordination is completed,” he said. In the ruling, the court also affirmed the state’s takeover of the land formerly under building use rights (HGB) along with the structures built on it. At the same time, the compensation claim submitted by PT Indobuildco was rejected. Thus, the area evacuation process will proceed without compensation to the company. Managing Director of PPKGBK, Rakhmadi Afif Kusumo, emphasised that the area reorganisation still considers social and economic impacts. He mentioned that Block 15 will eventually be restored to its function as a more organised, green public space integrated with the transportation system. Additionally, this takeover step is also related to efforts to restore the state’s rights over unfulfilled financial obligations. Based on a previous civil case ruling, PT Indobuildco still has an obligation to pay royalties of approximately US$45.3 million or equivalent to Rp789 billion to Kemensetneg and PPKGBK. Previously, PT Indobuildco had requested security deposit in the execution process. The company’s legal team leader, Hamdan Zoelva, considered the guarantee necessary to anticipate potential losses. “In our view, the execution should be accompanied by certain guarantees to avoid potential losses for the affected party,” he said. However, the request was not granted by the court. The government asserts that the execution process will continue as the final part of the reorganisation efforts and the salvation of state assets in the GBK area.