Sat, 07 Sep 2002

Unfair compensation

The news on the plan to continue the construction of the veteran-Ulujami section of the Jakarta outer ring road (JORR) should bring relief to motor vehicle owners. On the other hand, landowners who may be subject to eviction will be anxious. In 1994 and 1995, compensation for land used for the JORR project was unilaterally fixed and went against Presidential Decree No.55/1993. The price for land was put at Rp 275,000 per square meter without considering the tax on the property sale value (NJOP).

The price was approved by the mayor of South Jakarta on the basis of a proposal from landowners whose tax was set at Rp 150,000. The average price, although approved, was in opposition to the presidential decree. Many of the signatures on the proposal turned out to be forged.

Landowners suffering losses due to the average price filed a class action suit and won the case, which resulted in the cancellation of the mayor's decision.

In meeting the demand for compensation, I believe there is a scheme to determine the tax on the property sale value of the land for the project to reduce the amount to be paid out to landowners. Land value in the area has not been raised over the last five to seven years while in other parts of South Jakarta it has increased by 100 percent.

For the sake of the toll road's smooth construction, as one of the landowners to be evicted, I am appealing for fair, humane treatment.

SUNARTO PRAWIROSUJANTO

Jakarta