Jakarta Govt freezes license for new gigantic malls

JAKARTA: The Government of DKI Jakarta halted license for new giant malls in the city up to 2012, as the existing ones have potentially led to traffic and environmental problems.

Totally, the capital city contains 132 malls and 432 shopping centers, each on more than 5,000 squaremeter (sqm) space including department store, hypermarket, wholesale center, shop, and traditional market.

Governor of DKI Jakarta Fauzi Bowo confirmed that the policy is based on Jakartan developers’ recommendation.

“It’s not our one-sided policy but considering inputs from developers, urging the evaluation of license for new mall and shopping center as there are many unoccupied units in the existing ones,” he said yesterday.

Today, 563 units of mall and shopping center operated mostly in Central and South Jakarta. Thus, new license needs to be limited temporarily, The Head of Jakarta Planology Agency at Jakarta Provincial Government Wiriyatmoko said.

The Agency has obligated its officials to be more selective and to reject any application for shopping center, shop, and mall with land area of more than 5,000 sqm.

“Provincial Government has published Instruction of DKI Jakarta Governor on moratorium of license issuance for such mall and shopping center,” he said yesterday.

Wiriyatmoko, acting also as Daily Executive of Office Building Control and Supervision of DKI Jakarta, added the agency has a duty to socialize the governor instruction.

“Our agency has addressed an official letter to Chairman of Indonesia Real-Estate and Chairman of Indonesian Shopping Center Operators Association (APPBI) of DKI Jakarta to suspend the constructions of shopping center until the end of 2012,” he said.

On the other hand, the government will provide license for shopping center construction on less than 5,000 sqm area, as long as it is built on a strategic location which is considered not to burden the traffic and to disturb environment.

Chairman of APPBI DKI Jakarta Handaka Santosa informed that mall and shopping center in Jakarta still has potential to grow by 5%-10% of total units that has been already operated today.

Previously, Ferry Salanto, Research Division Manager at Colliers International said there are three units of mall and shopping center that will be completed this year, namely Kuningan City, Area 51, Green Tebet.

He mentioned total retail space supply in a period of January-March 2011 reached 3.93 million sqm following additional supply by 2,663 sqm. “Until the end of this year, there will be 89,000 sqm of shopping center space in Jakarta,” he said.

Jakarta Govt freezes license for new gigantic malls – Bisnis.com.

Jasa Marga’s subsidiary seals IDR1.55 trillion loan for JORR W2 construction

JAKARTA: PT Marga Lingkar Jakarta, a subsidiary of PT Jasa Marga Tbk, sealed credit syndication worth IDR1.55 trillion to fund the 7.67-km Jakarta Outer Ring Road (JORR) West 2 toll road project.

The Jakarta Outer Ring Road West 2 (JORR W2) will connect Kebon Jeruk with Ulujami toll road.

Such credit syndication is derived from the syndication of Bank Mandiri (IDR1.4 trillion) and Bank DKI (IDR150 billion) with 15 years maturity and 4 years of grace period.

It’s 70% of the total funds needed for the project around IDR2.23 trillion, while the remaining IDR680 billion will be from the company’s equity.

Thus, the company is now waiting for the acquisition process of 10 hectares land, Marga Lingkar Jakarta (MLJ) President Director Sonhadji Surahman said.

“A land acquisition committee team has been authorized to conduct the acquisition process. Therefore, we don’t know how many [percentage of land] that has been acquired,” he said after signing the credit agreement yesterday.

Kebon Jeruk-Ulujami toll road is considered as the key road to reduce traffic jam in Serpong Road in South Tangerang, following the prohibition for truck and container to use inner city toll road. Thus, such heavy vehicles from Cikampek and Merak could use the ring road without passing to Serpong road.

Sonhadji added the company will review the project construction plan, whether it will be kicked off after acquiring 100% of the land or in parralel with the land acquisition process.

Banking sector, he added, doesn’t provide a deadline to implement the construction plan. Earlier, the company plans to complete the construction in 18 months.

Meanwhile, PT Adhi Karya Tbk and PT Wijaya Karya (Wika) Tbk have won the company’s project auction and therefore became the project contractors.

Bank Mandiri’s Corporate Banking Director Fransisca Nelwan Mok said that the banking credit is given as a form of support to strengthen interconnectivity through the addition of alternative access to the freeway.

Such addition is expected to curb distribution and transportation costs.

Up to September 2011, Bank Mandiri has disbursed IDR9.6 trillion to finance the construction of toll road infrastructure. From such figure, IDR1.8 trillion was bilateral financing and the remaining IDR7.8 trillion as credit syndication.

Bank DKI provided such credit after considering that Jasa Marga as MLJ’s parent company is a key player in toll road business with 73% market share, Bank DKI Director Mulyatno Wibowo said as cited from the bank’s press release.

Head of Toll Road Regulatory Agency (BPJT) Ahmad Ghani Gazali said that such credit should be given after acquiring 75% of land area with a grace period for the next six months.

As planned, the toll road construction will be divided into four sections, i.e. first section covering 1.95 km, second section 1.50 km, third section 2.35 km, and fourth section 2.07 km.

In the concession project of JORR W2 North toll road, PT Jasa Marga Tbk controls 65% shares and PT Jakarta Propertindo (Jakpro) owns the remaining 35%.

Jasa Marga’s subsidiary seals IDR1.55 trillion loan for JORR W2 construction – Bisnis.com.

PLN will continue the plan to import gas supply

JAKARTA: State utility firm PT Perusahaan Listrik Negara (Persero) will see an obstacle in importing gas, as the construction of gas receiving terminal will complete by 2012, said Top Economic Minister Hatta Rajasa.

“Where the imported gas will be stored if there is no receiving terminal. We can’t put gas in pocket,” said Hatta at Presidential Palace today, in response to questions on PLN’s plan to import gas.

Receiving terminal is needed since imported gas could not be carried in drums, unlike LNG that can be delivered by ordinary vessel.

Once the receiving terminal is built, gas trading can start, he affirmed.

As earlier reported, the state utility firm will go ahead with its gas import plan from several countries though the government has committed to providing gas supply of 372,557 billion Btu for electricity production in 2012.

PLN President Director Dahlan Iskan in the meantime viewed that the need for gas supply is urgent and the state utility firm has to find the supply from any sources, both domestic and abroad.

Gas import needs receiving terminal, Economic Minister says – Bisnis.com.