Summarecon fails to provide plots
Summarecon fails to provide plots
JAKARTA (JP): PT Summarecon Agung, developer of Kelapa Gading
real estate in North Jakarta, admitted yesterday that the firm
had failed to set aside part of its shopping areas for small-
scale traders.
Chairman of the City Council's Commission B, in charge of
economic affairs, Abdulgani H. Abdullah, told reporters yesterday
that the company acknowledged its failure to meet the obligation
set by the city administration in a meeting with members of the
commission.
Abdulgani said that in yesterday's meeting, director of the
company Benny Lukman agreed to abide by the existing regulation
and provide shopping spaces for the small-scale traders in the
shopping area this year.
"I just don't understand why businessmen have to be reminded
all the time to fulfill their obligations," Abdulgani said.
He explained that according to Gubernatorial Decree No.
240/1983, every developer is obliged to set aside 20 percent of
the total area of commercial buildings for small-scale traders.
In this case the total shopping area in Kelapa Gading is about
34,000 square meters.
Abdulgani said if the obligation were converted into cash, the
company would have to pay about Rp 945 million (US$429,545) to
the city administration.
"But the developer has agreed not to fulfill the obligation in
cash," Abdulgani said, adding that the new plots will accommodate
about 150 small-scale traders who will mostly sell food and
beverages.
Previously PT Summarecon Agung was also under scrutiny due to
its failure to comply with bylaws on building social and public
facilities worth Rp 300.6 billion in Kelapa Gading real estate.
The company should build various facilities such as primary,
junior and high schools, a community center, subdistrict office,
parks, tennis courts, a swimming pool, health clinic and
community health center.
The city administration punished the developer, before it
promised to build the facilities by August this year, by
suspending the processing of new building permits as well as land
certificates in the developer's complex.
PT Summarecon Agung is a publicly listed company on the
Jakarta Stock Exchange. It holds nine land appropriation permits
for areas in North Jakarta which allow it to clear 307.6 hectares
of land.
In a related development, the commission also hailed a
decision by the company to hand over a market, built by the
company in 1985 in Kelapa Gading housing complex, to the city
administration 10 years before the expiration of its management
agreement.
"The company's board of directors told the commission that
they will hand over the market on Aug. 17, this year. This is a
very good step," Abdulgani said.
He added that an agreement between the company and the city
administration, signed in 1985, allows the company to manage the
market for 20 years. (yns)