Sutiyoso admits error in ex-brothel project

Ahmad Junaidi, The Jakarta Post, Jakarta

Governor Sutiyoso admitted on Monday there was an "administrative mistake" in the acquisition of 10.4 hectares of land in the former brothel complex of Kramat Tunggak in North Jakarta. The cost of acquiring this land was Rp 83 billion (US$8.3 million).

"Yes, there was administrative weakness in this matter. The land, which had been sold to pimps (some years ago) was still registered as the city's land," Sutiyoso said at City Hall.

He said that pending the completion of the Jakarta Prosecutor's Office investigation into the scam, no city officials would be punished.

"Let the prosecutors' office handle the matter. I would not be reluctant to punish my officials if they are found guilty," Sutiyoso promised.

A report last year by the State Audit Agency (BPK) stated that the city administration suffered Rp 26.5 billion in losses in the land acquisition.

BPK found evidence of markups in the acquisition of the former brothel land, which was conducted between 2000 and last year.

The audit agency said a government regulation stipulated the land should be purchased at 30 percent of the Value Sale of Taxed Property (NJOP). But it was purchased at 90 percent of the NJOP.

At least three factions in the City Council have in the past voiced suspicion about collusion and corruption in the land acquisition process.

These factions said, in their responses to Sutiyoso's budget speech, that land which had been appropriated by former governor Ali Sadikin in 1970 had been reacquired by the city in 2001.

They also said other city assets located in the brothel complex had been wrongly acquired.

The brothel complex was officially closed at the end of 1999. An Islamic center is currently being developed on the land.

The land acquisition was undertaken by a team of nine city officials, mostly from the North Jakarta Mayoralty. A member of the team, who was an official with the mayoralty's social agency, reportedly has been removed from his post because of this matter.

Separately, the intelligence assistant at the Jakarta Prosecutors' Office, J. Soehandoyo, said that Makmun Amin, the financial assistant to the City Secretary, would be questioned next week over this case.

"It is a preliminary investigation," Soehandoyo said, adding that his office had yet to name any suspects in the alleged land scam.

Makmun was the official who approved the disbursement of funds for the land acquisition.

The nine members of the team in charge of the land acquisition have been questioned by the prosecutors' office.