Rule on reclamation contribution since 1997: Ahok

JAKARTA. Governor Basuki “Ahok” Tjahaja Purnama has said that a regulation regarding an additional contribution from reclamation project developers has been in place since 1997, when Jakarta began inviting investors to carry out reclamation in the Jakarta Bay.

The regulation is stipulated in an agreement between the Jakarta administration and PT Manggala Krida Yudha ( MKY ) signed on Sept. 16, 1997, Ahok said on Friday.

“The agreement was made based on a presidential decree,” Ahok told journalists at City Hall on Friday, referring to Presidential Decree No. 52/1995 on the reclamation of Jakarta Bay, as reported by kompas.com.

The decree explains that the contribution could be in the form of money or the development of infrastructure outside the area in an effort to improve the Jakarta northern coastal area.

Ahok was questioned recently by Corruption Eradication Commission ( KPK ) investigators about a 15 percent contribution fee from developers of reclamation projects to the city administration, particularly because PT Agung Podomoro Land ( APL ) reportedly had paid a down payment for the contribution, although the legal basis in the form of a bylaw has not been approved by the city administration.

Private developers reportedly want to reduce the contribution to 5 percent.