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.