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View all search resultsGovt to confiscate Atrium Senen shopping mall
The Jakarta administration may have to concede the Atrium Senen building in Senen, Central Jakarta, to the central government as it has yet to pay Rp 54
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T
he Jakarta administration may have to concede the Atrium Senen building in Senen, Central Jakarta, to the central government as it has yet to pay Rp 54.7 billion (US$5.8 million) in property taxes this year.
The building’s owner, city-owned PD Pembangunan Sarana Jaya (PSJ), received a notice from the Finance Industry’s Directorate General of Taxation several months ago, saying that it had to pay Rp 36 billion in taxes and Rp 18.7 billion in fines due to the delayed payment.
Jakarta Governor Fauzi Bowo said tax payments had been stalled for years due to the poor contract between the city and the building’s management, PT Plaza Adika Lestari (PAL).
“We will correct this [the contract]. We will try to find a way to maintain the building’s ownership,” he said at City Hall on Monday.
He said his agencies were still formulating alternatives to finance the debt, including using the city budget to factor the debt.
The building, which is estimated to be valued at Rp 122 billion, was built in 1990 as part of the revitalization of the Senen traditional market. It operated as one of the most sophisticated shopping centers during the early 1990s.
But in recent years it has experienced declining popularity; it has lost competitive market share to newer shopping centers.
Earlier, PSJ finance director Bambang R. Juniarto said the company and the tax office have had disagreements regarding calculation of the outstanding tax.
“That’s why we refuse to pay,” he said as quoted by Media Indonesia daily.
Bambang said PAL had proposed several options to help finance the debt, including extending the rental contract from 2017 to 2037.
“The extension requires PAL to pay forward Rp 75 billion in rent,” he said.
The head of the City Council’s commission for taxes and finance, Rido Kamaludin, said he supported the administration’s plan to finance the debt.
“We urge the administration not to postpone the payment any longer or we may lose this strategic asset,” he said on Monday as quoted by beritajakarta.com.
He also said that the administration should better manage other assets to avoid any future problems.
