The purchase plan was put on hold after the administration learned that the land — located in the prime Hotel Indonesia (HI) traffic circle area in Central Jakarta and planned to be converted into green space –actually belonged to the government.

“Basically, the government cannot buy a plot of land that is owned by the government itself,” said Jakarta acting governor Sumarsono on Friday. “If the [ownership] status [of the land] is not clear, we cannot execute the purchase.”

The administration deemed the planned purchase as risky after the Jakarta Parks and Cemeteries Agency received a recommendation letter from the Agrarian and Spatial Planning Ministry.

The letter reveals that instead of an ownership certificate, the embassy holds a land-use title.

In the letter, the ministry said that it had permitted the embassy to sell the property to the city administration. Along with the recommendation letter, the ministry also attached a copy of the right-to-use title issued in 1956.

Despite the permission from the ministry, Sumarsono insisted on halting the purchase plan that had been agreed to by the embassy and Jakarta Governor Basuki “Ahok” Tjahaja Purnama in August.

“We want to seek clarification over the ownership status clear before we proceed with the purchase,” the acting governor said, claiming that without an ownership certificate, the land actually belonged to the government.

Ahok, who is on campaign leave, aimed to increase green spaces near the HI traffic circle. He planned the purchase of the 4,185-square-meter plot of land, where the British Embassy was then located, after learning that the embassy would move to the Patra Kuningan area, South Jakarta.

Both sides had agreed earlier this year that the property would be handed over for Rp 500 billion (US$37 million). The figure was rejected by the City Council, which deemed the price too high.

The councillors preferred the administration to buy land in the suburbs, where it could develop wider green spaces.

However, Ahok proceeded with his plan and a deal was finalized in August with a price tag of Rp 479 billion for the land, with purchase funds allocated from the 2016 city budget.

With the purchase halted, the administration will likely see its idle and non-disbursed funds increase by Rp 500 billion, said Gamal Sinurat, assistant to the city secretary for city development.

He added that while halting the purchasing process, city officials were also examining the legal status of the embassy’s land to avoid disputes in the future.

The Central Jakarta Land Agency claimed that although it only held a right-to-use title, the embassy was allowed to sell the land because it had received permission to do so from the Agrarian and Spatial Planning Ministry and the Foreign Ministry.

However, the agency refused to explain why despite only holding such a title that it was still able to sell the property.

“Regarding how they gained the certificate, we need to check our archives,” agency head Humaidi said as quoted by kompas.com on Friday.

United Kingdom Ambassador to Indonesia Moazzam Malik confirmed that it had held the certificate since 1961 and had received the purchase proposal from the administration in 2013.

“We remain committed to a fair and transparent process,” he said in a text message.

This is not the first time the administration has been entangled in land acquisition issues.

In June, the Supreme Audit Agency (BPK) found that the state might have lost Rp 648 billion after the Jakarta Housing and Public Buildings Agency bought land in Cengkareng, West Jakarta that had already belonged to the administration.

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