Thu, 24 Jan 2002

Sutiyoso threatens to sue developer

Ahmad Junaidi, The Jakarta Post, Jakarta

City administration officials have threatened legal action against the developer of a North Jakarta housing complex to finance construction of a dam to prevent flooding in the area, which includes the vital toll road that leads to Soekarno-Hatta International Airport.

On Wednesday, Governor Sutiyoso threatened to bring the developer, PT Mandara Permai, which is jointly controlled by two businessmen, Ciputra and Sudono Salim, to court if it refused the financing deal that was a precondition to the issuance of a housing permit for the luxurious Pantai Indah Kapuk complex.

"Building a dam was a requirement for the permit for the housing complex; We will bring the developer to court if they breach this requirement," Sutiyoso told reporters.

The developer has often been blamed for repeated flooding along the toll road and its surrounding areas.

Many people, particularly local residents, believe that the flooding is the result of the development of the complex on land which was once home to mangrove forests and swamp areas, which functioned as a natural water catchment.

The Ministry of Forestry reportedly issued the permit to build housing on the site.

However, residents have said that city administration officials should also be held accountable, too, since the City Environmental Office issued the environmental impact analysis (AMDAL) to the developer.

Head of the City Public Works Agency, IGKG Suena, said his office will soon discuss the construction of the dam in talks with the ministry and the developer.

Earlier, Suena said that the city would provide 4,000 square meters of land worth Rp 2.5 billion (US$250,000) for the dam, adding that its construction should be financed by the developer and city-owned developer BPL Pluit, which built the nearby Pluit housing complex.

The developer of the Pantai Indah Kapuk had previously promised to help pay for the construction of the dam.