Unravelling the Hotel Sultan Dispute: Pontjo Sutowo vs the State
JAKARTA — The dispute between PT Indobuildco and the Gelora Bung Karno Complex Management Center (PPKGBK) over Hotel Sultan remains unresolved. The hotel, located in the Gelora Bung Karno (GBK) area in Central Jakarta, is set to be evicted on Thursday, 18 June 2026, following a court order from the Central Jakarta District Court in case number 208/PDT.G/2025/PN.JKT.PST regarding the clearance of Block 15 of the GBK area, formerly known as Hotel Sultan.
Kharis Sucipto, legal counsel for the State Secretary and PPKGBK, stated that the execution date is a final ruling that all parties must respect. He explained that a registered letter dated 19 May 2026 notifying the eviction execution was sent to PT Indobuildco by the Central Jakarta District Court. Kharis added that the court’s deadline provides sufficient time for PT Indobuildco to vacate Block 15 of GBK voluntarily, while PPKGBK, as the new manager, prepares for a smooth, secure, and public-interest-friendly handover.
He emphasised that the execution date marks the conclusion of a lengthy legal process to reclaim state assets in Block 15 GBK. “The legal process for safeguarding national assets has reached its conclusion. The state has pursued all legal avenues, the court has issued a ruling, and now only implementation remains. There is no further legal basis to delay the return of these state assets,” he said.
The Hotel Sultan land dispute has spanned over two decades. The conflict began as the Right to Build (HGB) held by the Ibnu Sutowo family’s company on state-owned land neared its expiry. On 10 January 2000, PT Indobuildco applied to extend the HGB through the State Secretariat Ministry (Kemensesneg), the land rights holder in the GBK area. However, the extension was issued without recommendation from PPKGBK, the agency under Kemensesneg managing Senayan. This sparked the dispute between the government and private parties over land control in the area. The government estimates the HGB extension could cause state losses of up to Rp1.93 trillion.
On 27 October 2005, the Corruption Eradication Task Force began investigating alleged mismanagement of Gelora Senayan assets. In 2006, PT Indobuildco filed a lawsuit at the South Jakarta District Court regarding land management rights, targeting several state institutions including the National Land Agency (BPN), State Secretariat’s GBK Management Agency, Attorney General’s Office, Jakarta Provincial Land Agency, and Central Jakarta Land Office.