Indonesian Political, Business & Finance News

West Jakarta developers violate regulations

| Source: JP

West Jakarta developers violate regulations

Ahmad Junaidi, The Jakarta Post, Jakarta

The city administration announced on Monday that more than 60
percent or 68 of 109 private developers in West Jakarta had not
fulfilled their obligation to set aside spaces for public and
social facilities.

Speaking in a hearing with the City Council, secretary of the
West Jakarta development supervision team Diding Miskat said the
city's largest shopping center and apartment complex Mal Taman
Anggrek, was among the 68 developers.

"Mal Taman Anggrek has not fulfilled all its obligations since
it was built in 1996," Diding said.

According to its building permit, he said, MTA developer PT
Mulia Inti Pelangi is obliged to build eight mini markets, eight
kindergartens, four elementary schools and a junior high school.

The developer of the mall, which is located on a 5.5 hectare
plot of land in an area which was formerly a city forest in
Tomang, should also provide eight small mosques, eight community
centers, eight health centers and eight security posts.

According to Law No. 4/1992 on housing and settlement, a
housing developer must set aside 40 percent of its space for
public and social facilities or they will face a maximum sentence
of 10 years in jail and/or a maximum fine of Rp 100 million.

The City Bylaw 240/1995 states shopping center developers are
also required to provide 20 percent of their space for small
enterprises.

However, Bylaw No. 241/1995 states that developers can pay a
fee as compensation to the administration if they are unable to
accommodate small businesses. The administration is then expected
to use the compensation money to accommodate the small businesses
elsewhere.

Diding said that the MTA developer had also failed to pay Rp
30 billion in compensation as required by the law.

He said that once the developer paid some Rp 30 billion to the
city administration but not for the required compensation. The
fund, he said, was to finance the development of the Tomang
overpass and a low-cost apartment in Bulak Wadon, Cengkareng,
West Jakarta.

"Aside from the low-cost apartment and overpass, they have not
fulfilled their obligation to provide public and social
facilities," he said.

Some of the 68 developers failed to fulfill their obligations
as they went bankrupt due to the prolonged crisis, which hit the
country in mid 1997.

The MTA developer could not be reached for comment.

City councillor Amarullah Asbah suggested the city
administration take legal action against the developer for its
failure to fulfill its obligations.

"It's deceit. The company should have been brought to court,"
Amarullah of Golkar Party said.

The facts show that more than 90 percent of developers in
South Jakarta also violated the regulations.

Councillors often announce their findings of violations and
demand stern action but then later back down after being
approached by the developers.

View JSON | Print