The Jakarta Post
City-owned developer PT Jakarta Propertindo (Jakpro) is planning to acquire land formerly used by the British Embassy near the Hotel Indonesia traffic circle in Central Jakarta for Rp 500 billion (US$32.6 million).
Jakpro president director Dwi Wahyu Daryoto said his firm had proposed a Rp 500 billion capital injection from the City Council as the deliberation of 2019 city budget bylaw draft had begun.
“The land that was formerly used by the embassy is worth Rp 500 billion,” he said on Thursday as reported by kompas.com.
The value was based on the latest independent assessments conducted by public auditors, he added.
Over concerns of the status of the land, acting assistant for the city's economic and finance division, Sri Haryati, said the city had thoroughly examined the land, located in the heart of the capital, to ensure it has never been owned by the city administration. The executive will present the supporting documents to the City Council in the next meeting, she said.
Under former governor Basuki “Ahok” Tjahaja Purnama, the city was planning to purchase the land and use it as a green space, demonstration area and command center for the nearby MRT.
The city had also allocated Rp 479 billion for its procurement in 2016, but the transaction was canceled. The city could not purchase the land because the embassy had not yet paid the Rp 63,984 rent per year based on the taxable value of the property, in line with the right to use the land granted by the central government in 1961.
The rent had never been paid as it was later found that no bills were ever sent to the embassy. The city was allowed to purchase it after the embassy paid all the arrears.
The building on the land has been left vacant as the embassy moved to a new building in Kuningan, South Jakarta, in June 2013. (ami)