TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Land procurement problems block MRT completion

Jakarta’s rail-based MRT system may not be completed on schedule as the city administration has yet to procure all the land needed for the project, which is partly funded by a Japanese loan

Agnes Anya (The Jakarta Post)
Jakarta
Mon, July 25, 2016

Share This Article

Change Size

Land procurement problems block MRT completion

Jakarta’s rail-based MRT system may not be completed on schedule as the city administration has yet to procure all the land needed for the project, which is partly funded by a Japanese loan.

Jakarta Deputy Governor Djarot Saiful Hidayat said his administration had yet to procure all the needed land because some landowners were refusing to turn over their property for the price of Rp 26 million (US$1,976) per square meter that was set by an appraisal system. The price is higher than the area’s taxable value of property (NJOP), which is Rp 13 million per square meter.

The owners have demanded between Rp 50 million and Rp 150 million per square meter for the land needed for the project, which had a ground-breaking ceremony led by then Jakarta governor Joko “Jokowi” Widodo on Oct 10, 2013, about a year before he was elected to be the country’s president. The megaproject, which is partially funded by a ¥125 billion ($1.18 billion) soft loan from the Japan International Cooperation Agency (JICA), was scheduled to be completed in 2018.

“Meanwhile, we cannot pay that much [demanded by the landowners]. If we provide them with that amount, we break the law because we would be paying for the land outside of the price set by the appraisal system,” Djarot claimed.

Hence, he added that the administration had decided to use a consignment system, in which the procurement payments would be handled and carried out by the courts. The courts also have the authority to decide on the amount.

“If the owners insist on not handing over their land the previous way, we will use consignment. This is for national needs. Hence, personal interest must not come before public interest,” he said on Friday, urging the South Jakarta municipality and city-owned project operator PT MRT Jakarta to impose stricter measures to ensure the procurement.

The procurement, particularly in critical areas meant for elevated MRT stations and depots, must be finished as soon as possible, said Djarot.

The administration plans to build the Lebak Bulus station and depot on 33 plots of land in South Jakarta in the vicinity of Jl. Fatmawati, Jl. Haji Nawi and Jl. Cipete.

Separately, South Jakarta Mayor Tri Kurniadi said that the municipality planned to finish the procurement by the end of this year.

He added that since last year, officials had procured 123,327 square meters of land out of the 138,093 square meters needed for the project. Seventy-five plots of land were paid for with funds disbursed by the Bina Marga road Agency and 38 plots had been procured through the consignment scheme.

Jakarta’s Transportation Agency head Andri Yansyah said that his agency would attempt to soon finish procurement of the 2,298 square meters of land in Lebak Bulus that are under its jurisdiction.

In the initial phase, however, the land will be obtained through a leasing scheme because the agency has yet to receive the procurement budget.

“The budget, which previously was in the 2016 city budget, was dismissed, but it will be proposed again in the revised budget,” said Andri, who said he is optimistic that the MRT project will not be delayed because of the hindered procurement. “We need to procure 25 more plots of land. They are only 2 percent of our responsibility.”

{

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.