Ahok to Transform Asset Management Agreement
Reported by Erna Martiyanti | Translated by Arief Rahman
To eliminate asset management agreement that harms Jakarta Provincial Government, Jakarta Governor Basuki Tjahaja Purnama (Ahok) will transform all agreement systems from the built operation transfer (BOT) into build transfer operation (BTO).
The developer can operate their project if they build their project first and make it to become Jakarta asset
"All BTO agreements will be transformed. The developer can operate their project if they build their project first and make it to become Jakarta asset. So if we cooperate with one side and congestion cannot be avoided, we will do foreclosure," told Ahok, at City Hall, Tuesday (6/30).
He cited that there are several agreements which harm Jakarta government, ranging from Tanah Abang Block A development and Bantargebang Landfill project. We have to pay Rp 400 billion per day, whereas the used land is belonging to Jakarta government.
End of March, Sea World Ready to Amuse CitizensAnother example is Sea World, Ancol. In this case, the BOT agreement is valid for 30 years. But, after the agreement is expired, the management side refused to return the land to Jakarta government and asked for an extension for 20 years ahead.
"That's why, most of our agreement is weak. Many agreements with private side are not mentioned if it does not explain the land return to us," he told.
Ahok also admitted the asset management in the capital is disorganized and must be fixed. To take the asset used by private, all agreements will be studied.
"We only fix the whole agreement that already exist before our reign because all of it is disorganized," he disclosed.