City-owned PT Jakarta Tourisindo (JXB) and PT Moda Integrasi Transportasi Jabodetabek (MITJ) and state-owned Indonesia Tourism Development Corporation (ITDC) signed in Jakarta on Wednesday a heads of agreement (HoA) to form the unnamed JV.

The three firms pledged in a joint statement that they would develop Kota Tua into “an integrated, modern tourism site that retains its historical value and strengthens Jakarta’s status as one of the most historical tourism destinations in Indonesia.” They did not specify when the JV would be formed.

In managing Kota Tua, hotel company JXB plans to arrange events, transportation firm MITJ plans to integrate transportation and ITDC, the same company developing Bali’s Nusa Dua and Lombok’s Mandalika Bay, plans to develop pedestrian-friendly facilities among other improvements.

“This JV is expected to be the solution to all problems in Kota Tua and be a concrete step toward tackling the skepticism over Kota Tua’s revitalization plans,” said JXB president director Novita Dewi in the statement.

Dedi Tarmizy, head of the Kota Tua Zone Management Unit (UPK), the body that currently manages the old town, said the Jakarta governor was still preparing the regulations relating to the area’s management once the JV was established.

“They prepare the rules, we implement the rules,” he told The Jakarta Post via text message on Thursday.

Jakarta has been trying to convert Kota Tua, which was the city center under Dutch colonial rule, into a historical tourism hotspot for several years but progress has been slow as private owners have either opted to tear down old buildings or the owners have been difficult to track down.

Jakarta once proposed listing Kota Tua as a UNESCO World Heritage Site but the UN body rejected the plan in 2018 because the neighborhood lacked “integrity and authenticity” as an old town.

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The JV is set to manage a 240-hectare area that spans from Kota Tua in West Jakarta to Sunda Kelapa Port in North Jakarta. However, only a few colonial-era buildings, such as the most famous site Fatahillah Square, remain. The rest of the area is covered with modern buildings.

Statistics Indonesia (BPS) data show that the Jakarta History Museum in Fatahillah Square and Sunda Kelapa were, respectively, the city’s fifth- and seventh-most visited tourist sites last year as overall visitors in other tourism sites nosedived 85.5 percent annually to 4.79 million due to large scale social restrictions (PSBB).

“Without the private sector’s support, the state cannot do anything. It is like riding in a boat. You do the rowing, the state does the steering,” said Jakarta Governor Anies Baswedan in a speech during the HoA signing ceremony.

The governor also pledged financial support, regulatory support and “a lot of flexibility and authority” for the JV to develop Kota Tua not only into a major historical tourist attraction but also an economic hub for creative industries.

Jakarta Governor Anies Baswedan (front left) and State-Owned Enterprises Minister Erick Thohir (front right) during an HoA signing ceremony at Fatahillah Square in Jakarta on Wednesday. The HoA marked the start of the establishment of a new state JV to manage Kota Tua. (Handout/.)

MITJ president director Tuhiyat added that Kota Tua would be connected to Jakarta’s MRT system, which is currently undergoing its second-phase extension slated for completion in 2027. The MRT will stop at Kota train station.

Read also: Kota Tua: Slowly lost in time

The HoA signing ceremony was attended by several other high-ranking officials including Tourism and Creative Economy Minister Sandiaga Salahuddin Uno, State-Owned Enterprises Minister Erick Thohir and Jakarta Military Commander Maj. Gen. Dudung Abdurachman.

“Today we are proud to be included in developing Kota Tua, which has long been neglected,” said Erick.

State-owned companies own several sites within the old town. This includes port operator Pelindo II, which owns Sunda Kelapa, train operator PT Kereta Api Indonesia (KAI), which owns Kota Station and Bank Mandiri, owner of the Bank Mandiri Museum.