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Ahok prefers 15% contribution to profit sharing for reclamations
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Governor Basuki “Ahok” Tjahaja Purnama answers questions from journalists after being interrogated by Corruption Eradication Commission (KPK) investigators as a witness in a reclamation corruption case on Tuesday (kompas.com/Abba Gabrillin)
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overnor Basuki “Ahok” Tjahaja Purnama said on Wednesday he had told the Corruption Eradication Commission (KPK) investigators about his preference for an additional contribution of 15 percent over a required profit-sharing by private companies that win reclamation projects.
It is one of the issues being examined by KPK investigators when he was summoned by the antigraft body on Tuesday, Ahok said.
“If we agree with a profit-sharing scheme, how if a developer lies about its profits?” Ahok told journalists at City Hall.
The Jakarta city administration has included the additional 15 percent contribution from reclamation developers into a bill on the North Jakarta Strategic Area Regional Spatial Plan. It was one of the two reclamation bills that were being deliberated by the Jakarta City Council.
According to a regulation issued by the National Development Planning Agency (Bappenas), all of the reclaimed land is owned by the state, while the developer only has utilization rights to construct properties on 95 percent of the reclaimed land for a certain period of time.
Meanwhile, 5 percent of the reclaimed land should be handed over to the government, excluding what is needed for the public and social facilities (Fasos/Fasum) that should be built by the developer.
The additional contribution from the developer was in the spotlight when KPK investigators arrested Mohamad Sanusi, a city councilor, for allegedly receiving a bribe from PT Agung Podomoro Land (APL) related to a reclamation bill being deliberated by the City Council.
The bribery case, particularly, was allegedly related to efforts by the developer to change the figure of 15 percent to only 5 percent.
Ahok said his testimony was needed to complete the legal document of the three corruption suspects -- Agung Podomoro Land (APL) CEO Ariesman Widjaja, Sanusi and APL employee Trinanda Prihantoro.
Ahok said he told the KPK that the 15 percent contribution would be more beneficial to the city administration than a profit sharing scheme.
If the 15 percent additional contribution is agreed, the city will receive 15 percent of funds from sold properties on reclaimed lands based on the taxable value of property (NJOP), the governor explained.
“Should the developers keep postponing the contribution payment, their debt to the administration will keep increasing,” Ahok said, adding that the figure of 15 percent was decided based on the advice from credible consultants. (bbn)
