Sutiyoso gave go-ahead for Kemayoran land scam
Ahmad Junaidi, The Jakarta Post, Jakarta
City Governor Sutiyoso admitted on Thursday that he had approved the sale of 10-hectare plot of land worth about Rp 30 billion (US$3 million) belonging to city-joint venture firm PT Jakarta International Trade Fair (JITF) in Kemayoran, Central Jakarta.
"Yes, I signed the letter but I should (re)check it. The sale was aimed at covering the firm's debt," Sutiyoso told reporters at City Hall.
Separately, city spokesman Muhayat claimed that Sutiyoso signed the approval letter in his capacity as the firm's president commissioner.
Muhayat said the land was never recorded as a city asset, saying that it belonged to the company which managed the Jakarta exhibition ground.
"The sale itself has not yet happened," he claimed, adding that the governor had resigned as the company's president commissioner earlier this year.
During the City Council session in response to Sutiyoso's 2001 budget speech on Tuesday, the National Mandate Party (PAN) faction accused Sutiyoso of collusion and corruption when he approved the land sale.
Five percent of PT JITF's shares is owned by state-owned Kemayoran Management Body (BPKK), 52.5 percent by PT Jaya Nusa Pradana (JNP) and 42.5 percent owned by the Japan Development Corporation.
The city-owned Jakarta Fair (PRJ) Foundation owns 25 percent of the shares of PT JNP, which used to own a 44-hectare plot of land in the Kemayoran fairground, and 75 percent of the shares is owned by developer PT Griya Nusa Pradana (GNP), which is controlled by businessman Edward Surjadjaja.
PT JNP exchanged its 44-hectare plot of land in Kemayoran for a 52.5 percent share in PT JITF.
Sutiyoso approved the sale of the 10-hectare plot of land to PT GNP.
The land sale was planned to cover part of PT JITF's debt amounting US$120 million to the Japanese government. The debt reportedly had decreased to US$20 million as the Japanese government gave it a reduction.
Even though Muhayat argued that the land in Kemayoran was not included as a city asset, councillor Ugiek Sugihardjo of the Indonesian Democratic Party of Struggle insisted that it still belonged to the city.
He suspected corruption behind the land sale as it was done without the council's approval.
"We have demanded that the sale be canceled," Ugiek, who is a member of the council's special team investigating the case, said on Thursday.
He suspected there was "insider trading" involved as the land worth about Rp 30 billion was sold to PT GNP.
He alleged that Edward had tried to buy the land for years to develop a huge property project in the area.
Muhayat admitted there was a plan to sell the land to PT GNP. "If the land is sold an to outsider it will be dangerous," he said without explaining.