JAKARTA: Housing and Settlements Minister Maruarar “Ara” Sirait has pledged to hold to account a state-owned enterprise responsible for the construction of the stalled LRT City project, following a wave of public complaints.
Ara confirmed on Tuesday that his ministry would launch an immediate investigation into grievances lodged by consumers, many of whom have been waiting years for the completion of apartments strategically linked to Greater Jakarta’s light rapid transit (LRT) network.
“This must be resolved. We will hold the developer accountable,” Ara told reporters in Jakarta on Tuesday, as reported by Bisnis.com, declining to elaborate on potential sanctions but stressing that the probe would commence as soon as possible.
The pledge comes as PT Adhi Commuter Properti (ADCP), the subsidiary of state-owned construction firm PT Adhi Karya, issued a public apology for the prolonged delays.
Farid Budiyanto, ADCP’s director of operations, acknowledged that the company is grappling with challenges that have severely hampered construction timelines.
Farid stated that the firm was currently formulating a phased completion plan aimed at accelerating construction and honouring handover obligations.
“The company apologises to consumers for the current conditions, including delays in completion and handover.
“We understand these conditions cause inconvenience and are a concern for consumers,” he said, as quoted by Bisnis.com.
The developer’s latest financial disclosures underscore the staggering scale of the delays across its portfolio of 11 transit oriented projects in Greater Jakarta.
While the LRT City Jatibening project is targeted for completion this year, other developments remain shockingly distant on the horizon.
Consumers at LRT City Bekasi Timur Green Avenue may face a wait until 2038, while the handover for LRT City Tebet is not projected until 2033.
The timeline raises questions about the feasibility of the Transit Oriented Development concept, which was designed to integrate residential living with public transportation.
With construction deadlines spread across the next decade, the minister’s impending investigation is seen as a litmus test for consumer protection in Indonesia’s struggling property sector.
The prolonged delays plaguing LRT City apartment projects stem from severe liquidity pressures and an ongoing corporate restructuring process, Farid said.
He explained that ADCP is pursuing a comprehensive recovery process to stabilise its financial and operational footing.
However, he conceded that the company’s strained finances meant it could not complete all 11 projects simultaneously.
“The company continues to prioritise efficient and effective steps so that completion can be carried out in stages according to our capabilities and recovery progress.”
To accelerate construction, ADCP is exploring partnerships with contractors under a turnkey scheme and seeking investors with substantial funding capacity.
Once financial recovery advances, the handover of units will become top priority.
Despite the liquidity challenges, Farid insisted that the company remained operational, with all assets under its control and project permits proceeding according to regulations. — The Jakarta Post/ANN
