Summarecon vows to build public facilities

Summarecon vows to build public facilities

JAKARTA (JP): PT Summarecon Agung, the giant developer that
manages the Kelapa Gading real estate complex in North Jakarta,
has promised to build social and public facilities as required by
regulations.

Deputy Governor for Administrative Affairs Idroes said
Summarecon's board of directors have given their word that the
developer will build the mandatory facilities in blocks A, B, C,
D, E, F, G, H and I in the Kelapa Gading real estate complex.

Once completed, these facilities, worth an estimated Rp 300
billion, will be turned over to the North Jakarta mayoralty,
Idroes said.

The pledge came immediately after Mayor Suprawito announced
that his office was suspending all processing of building permits
for Summarecon, which he accused of neglecting its obligations.

All developers are required by regulation to provide such
facilities as roads and gutters, houses of worship, schools and
parks.

Angry members of the City Council estimated that Summarecon
owes the mayoralty some Rp 1 trillion worth of facilities.

Idroes said his estimate of the Rp 300 billion worth of
facilities excludes roads and gutters. "Although the
administration is not setting a deadline for the allocation of
those facilities, we expect it will be done as soon as possible,"
he told Antara news agency.

He added that the developer is required to hand over 28 parks
worth Rp 86 billion before Independence Day on Aug. 17.

The city administration has ordered the North Jakarta
Mayoralty to keep an eye on the company to see whether or not it
is keeping its promise.

Idroes said the city administration will take even stronger
action if Summarecon continues to neglect its obligations.

Mayor Suprawito had earlier threatened to rescind the nine
land procurement permits currently held by Summarecon and
possibly even file a lawsuit against the developer.

Idroes said the city administration will assist the developer
in getting the building permits for the public and social
facilities. Some of the existing facilities that were built
without the necessary permits will have to be torn down, he said,
citing a clinic as one example.

Summarecon is not the only developer in North Jakarta that is
in hot water. On Friday, the mayoralty announced similar
punishment for the management of Concord 2000, another expensive
housing complex.

Radji Pramono, secretary to the North Jakarta Mayor, said
developers have managed to ignore the regulations on social and
public facilities for so long because the rules do not stipulate
penalty for violations.

Even the legality of the decision to deny certification
services to Summarecon and PT Quartalintas Sembada, the developer
of Concord 2000, have been questioned by the City Council.

According to Antara there are 37 companies in North Jakarta
that have not yet fulfilled their obligation to build and hand
over facilities worth Rp 2.4 trillion to the city administration.
(yns)