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)