Takeover of Hotel Sultan Buildings and Business Deemed 'Arbitrary'

“We deeply regret the State Secretariat’s actions, which completely shut the door on deliberation and dialogue to resolve the Hotel Sultan issue. The State Secretariat prioritised a power-based approach using the law over dialogue and deliberation,” Hamdan told RMOL in Jakarta on Thursday, 18 June 2026. He assessed that from the outset, the State Secretariat favoured a power-based approach rather than opening space for dialogue to find a joint solution. According to Hamdan, PT Indobuildco had from the beginning requested communication and deliberation to resolve the dispute. However, these efforts reportedly did not receive an adequate response. He also asserted that the Hotel Sultan building, hotel property, and ongoing business activities were built through PT Indobuildco’s investment and bank financing, not through a Build Operate Transfer (BOT) or Bangun Guna Serah scheme. “The takeover of all hotel buildings, property, and the Hotel Sultan business is an arbitrary act. The Hotel Sultan building and PT Indobuildco’s investment originated from bank loans and not construction under a BOT or Bangun Serah model,” he said. Hamdan viewed that the State Secretariat’s move potentially creates legal uncertainty for the business world and investment in Indonesia. “The State Secretariat’s step, which appears to be an act of state, damages the business world and the face of investment in Indonesia. This move creates legal uncertainty in investment in Indonesia,” he stressed. Furthermore, Hamdan assessed that the ongoing dispute does not concern ownership of the hotel building or business management, but rather the status of land rights. “The Hotel Sultan dispute has always been a dispute related to land rights, or the overlap between PT Indobuildco’s Right to Build (HGB) and the State Secretariat’s Right to Manage land, not a dispute over the hotel business or building,” he explained. He even asserted that to date, no court ruling has definitively determined who owns the Hotel Sultan building. “There has never been a valid court ruling on who owns the Hotel Sultan building,” Hamdan said. Previously, the execution of the eviction of State-Owned Assets (BMN) Block 15 in the former Hotel Sultan area was marked by clashes between masses and security forces. A total of 31 people were reported injured, consisting of 28 police officers, one military personnel, and two civilians. Additionally, officers detained 119 people for data collection and further examination. The execution was carried out with security provided by 3,161 joint personnel based on Central Jakarta District Court ruling Number 208/Pdt.G/2025/PN.Jkt.Pst. Polda Metro Jaya Head of Public Relations, Commissioner Budi Hermanto, stated that the execution of a legally binding court ruling must be respected by all parties. “The act of obstructing the execution of a legally binding court ruling is not only unlawful but also undermines the principle that court rulings must be presumed correct and respected by every citizen for the sake of shared social order,” Budi concluded.