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Jakarta Post

What's wrong with Semanggi interchange?

But what lies behind is abuse of the land use regulation.

Muhammad Daud (The Jakarta Post)
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New York
Wed, September 6, 2017

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What's wrong with Semanggi interchange? The new Semanggi Interchange officially opens on Aug. 17. (JP/Seto Wardhana)

D

uring the commemoration of Independence Day, President Joko “Jokowi” Widodo inaugurated the Semanggi Interchange and joined the crowd in complimenting the city for its breakthrough achievement. But what lies behind that celebration, unfortunately, is abuse of the land use regulation.

The interchange was constructed by PT Mitra Panca Persada as part of Rp 579 billion (US$43 million) in compensation for additional floor area ratio (KLB). 

Jakarta Gubernatorial Decree No. 210/2016 allows property located in KLB bonus areas to acquire additional KLB in exchange for building public facilities. Additional KLB allows property owners to build taller buildings with a higher utility rate and value. In return, the city gets public facilities equaling the property value increase to be built or renovated. 

While the regulation seems to offer a fair deal, it exploits KLB as a source of funding without considering the land-use implications. 

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