T

he Jakarta Police are further developing an investigation into suspected corruption in reclamation projects in North Jakarta by questioning dozens of witnesses, such as the city tax agency head.

On Tuesday, the police interrogated Jakarta Tax and Levy Board (BPRD) head Edi Sumantri, asking him about the method of determining the taxable value of property (NJOP) on islets C and D.

The two islets are being developed by PT Kapuk Naga Indah (KNI), a subsidiary of Agung Sedayu Group.

In August, the agency set the NJOP at Rp 3.1 million (US$229) per square meter based on an appraisal by public auditor office Dwi Haryantono and Agustinus Tamba.

KNI reportedly paid a Rp 480 billion property transfer fee (BPHTB) for islets C and D, which measure 276 hectares and 312 ha, respectively.

The figure is far below the NJOP in nearby areas, such as Pantai Indah Kapuk and Ancol, where it reaches up to Rp 25 million per square meter.

“We suspect state losses resulted from the method of determining the NJOP,” said Jakarta Police special crimes head of resources and the environment Adj. Sr. Comr. Sutarmo.

Sutarmo said the police would question Edi again and summoned the head of the property appraiser, Dwi Haryantono, regarding the matter.

The police will also summon officials of the city administration and relevant ministries, the developer and City Council members involved in the projects, he said.

Police special crimes director Sr. Comr. Adi Deriyan said earlier there was a possibility that former Jakarta governor Djarot Saiful Hidayat would also be questioned, given that the NJOP was officially set during his term.

Djarot said in September that the NJOP was rather low because the islets were uninhabited.

A high NJOP would discourage investors, he said.

The city administration set the NJOP on Aug. 23 while a moratorium on reclamation in Jakarta Bay was in force, or three days after President Joko “Jokowi” Widodo handed out certificates to manage the islets. One day after the issuance of a decree on the NJOP, the North Jakarta administration issued a building use permit (HGB) for islet D, where several buildings were built in 2016.

The central government officially lifted the moratorium on Oct. 5.

The administration was set to reappraise the islets in January or February after the deliberation of the draft city budget, according to the deputy head of Commission C overseeing financial issues, Cinta Mega.

Center for Indonesia Taxation Analysis (Cita) executive director Yustinus Prastowo said the NJOP on the reclaimed islets could not be compared to that in nearby areas such as Ancol and Pantai Indah Kapuk, which had established residential areas.

Yustinus said the administration could revise the NJOP if errors had been made in the determination process.