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Jakarta Post
The Jakarta Post
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Despite good audit grade, Jakarta still has troubled assets

  • News Desk
    News Desk

    The Jakarta Post

Jakarta | Wed, May 30, 2018 | 07:26 pm
Despite good audit grade, Jakarta still has troubled assets This picture shows the planned cardiac and cancer hospital that would have been constructed on the land that the city administration purchased from the Sumber Waras Foundation. (kompas.com/Windoro Adi )

Although the Jakarta administration was recently awarded an unqualified opinion for its financial report, it has admitted that the status of several assets still hangs in the balance.   

Jakarta Inspectorate head Zainal said the city administration had not succeeded in getting its money back from botched land procurements in West Jakarta.

“We are still asking [related parties] to return the money,” Zainal said on Tuesday as quoted by tempo.co.

The Supreme Audit Agency (BPK) gave an unqualified opinion on Jakarta’s 2017 financial report on Monday, the first one in four years.

The agency had cited the troubled procurement of land in Grogol and Cengkareng, both in West Jakarta, as the reason for the poor reports. 

Read also: After irregularities in Jokowi-Ahok era, Jakarta now gets 'clean' status

In an effort to sort out its accounting system, the Jakarta administration listed some of the money in the land purchase in Grogol, which the BPK found be inflated, as the money owed to the administration.  

This is despite the fact that the Sumber Waras Foundation, the land’s previous owner, had refused to pay back the money that had been deemed by the BPK to be an overpayment.

In 2015, the BPK suggested that the foundation return Rp 191 billion (US$13.65 million) to the administration, saying that it had paid more than the land’s taxable value of property.

For the land in Cengkareng, Zainal said the city administration would file a lawsuit against Toeti Noezlar Sokearno who had claimed ownership rights over the land.

The BPK discovered that the land, which the administration bought from Toeti, in fact belonged to the city administration.

Despite the unresolved issues, both plots are registered as assets of the administrations. (cal/wit)

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