Water Front City project in Bandarlampung halted

Bandar Lampung Mayor Herman H.N. suspended the Water Front City (WFC) project, a coastal expansion initiative begun by former mayor Suharto in 2004 and resumed by former mayor Eddy Sutrisno from 2005 to 2010. Herman said he had discovered many irregularities, especially regarding land issues.

“Foreign investors required us to allocate trillions of rupiah despite the fact that a large portion of the land is currently dominated by the private sector. I initially thought that the land for the project was owned by the Bandarlampung municipality, but it turned out that a large swathe of the land is privately owned, including dozens of hectares of reclaimed coastline,” Herman said on Friday.

Herman added the municipality would resume the project if there were investors willing to invest 100 percent of required capital and guarantee certainty on land ownership rights. He added that the Bandarlampung municipality was also not very keen on seeking investors for resuming the project.

According to Herman, he only became aware that the municipality does not own the land in the WFC area after conducting document inspections and field observations. “The municipality apparently owns only a 60-square-meter plot on the edge of the people’s settlement,” he said.

A number of foreign investors had earlier expressed interest in investing in the WFC project. PT Middle East Venture of Malaysia, for instance, said it would invest at least Rp 1 trillion (US$111 million) in the project. It was even willing to invest between Rp 26 trillion and Rp 30 trillion for the project.

The initial funds of Rp 1 trillion from PT Middle East Venture would be used to expand the integrated fishing harbor in Lempasing and the Panjang international port.

Dubai-based Saudi Mubasher Ltd. Co. also was earlier committed to investing Rp 26 trillion in the WFC project, but it required the Bandarlampung municipality to set aside Rp 10 trillion for supplementary funds.

“The Bandarlampung municipality does not have those funds. The conditions are too harsh. The entire provincial budget does not amount to Rp 10 trillion,” Herman said.

To realize the WFC project, the Bandarlampung municipality has been asked to prepare buildings and arrange land acquisition. There are no less than 50,000 families currently living in the planned WFC location, especially along the coast of Lampung Bay stretching 27 kilometers.

In the master plan, the WFC project is divided into three zones. Zone A consists of residential flats, the WFC Center, a water front gate, business corridor, integrated fishing area, modern residential area, a beach recreation location and a conservation area.

Zone B has been planned for a passenger and cargo port, private marinas and a limited industrial zone.

Zone C is for global business, shopping malls, beach recreation, low-density housing, low-cost flats, an urban park and conservation center, cafes and restaurants, a Sumatra Trade Center, a Sumatra-Java Trade Center, a city walk and hotels.

Zone D will serve as a recreational location and city park, low-density housing, hotels and restaurants, a golf course, bungalows and villas, a Sumatra rain forest conservation area, karaoke lounges, an underwater park, meeting hall, recreational locations and an education park.

To facilitate the WFC program, the Bandarlampung municipality has appointed two companies to reclaim areas of Lampung Bay — PT Bukit Alam Surya (BAS) and PT Sekar Kanaka Langgeng (SKL). BAS, owned by Artalita Suryani, or Ayin, (who was convicted of bribery), is currently managed by one of her sons.

The coastal reclamation project would be carried out by excavation firm Camang Hill, named after one of the hills in Bandarlampung, also currently in the hands of Ayin.

BAS and SKL have so far reclaimed dozens of hectares of coastline currently owned by both companies. The reclaimed areas are currently the most important parts of the WFC.