JAKARTA (TheInsiderStories) – Indonesian government has established two districts in East Kalimantan as the location of the new capital city. However, not a few who criticized the removal planned.
Not without reason, after the announcement, suddenly big businessmen name in Indonesia reported have hectares of land near to the future capital. Indonesian property developer, PT Ciputra Development Tbk (IDX: CTRA) for an example.
The company has a total land of 870 hectares throughout Kalimantan, and the most abundant land in Samarinda and Balikpapan which totaled area 620 hectares. In Samarinda, Ciputra has a total land area of 590 hectares consisting of CitraGrand Senyiur City Samarinda 397 hectares, CitraGarden City Samarinda 100 hectares and CitraLand City Samarinda 93 hectares.
Then, in Balikpapan, Ciputra owned 21 hectares of land in Citra Bukit Indah in Balikpapan and Citra City Balikpapan. Outside Samarinda and Balikpapan, Ciputra also has land in CitraMitra City Banjarbaru covering an area of 172 hectares, CitraLand Banjarmasin 40 hectares, CitraGarden Banjarmasin 10 hectares, and CitraGarden Aneka Pontianak 27 hectares.
Aside from Ciputra, other property developer owned land in Balikpapan is PT Agung Podomoro Land Tbk (IDX: APLN). Through advertising, the company invites people to invest in the coastal bay reclamation project in Balikpapan Bay.
Based on the company data, the developer have 5 hectares of land in a location called Borneo Bay City, a strategic location because located in the heart of Balikpapan. At this location, Agung Padomoro develope a superblock consisting of lifestyle malls, hotels and seven apartment towers (Borneo Bay Residences).
Besides Ciputra and Agung Padomoro Land, there are other names from among the top politicians in Indonesia. They have a business area in East Kalimantan, among them are a politician from Gerakan Indonesia Raya Party, Hasjim Djojohadikusumo, Maritime Coordinating Minister, Luhut Binsar Pandjaitan, well-known businessman Abu Rizal Bakrie, Edwin Soerdjaja and Sandiaga Salahuddin Uno. Except for Djojohadikusumo and Uno, Pandjaitan and Bakrie are people who are in President Widodo’ power circle.
Based on data released by Jaringan Advokasi Tambang (JATAM), Djojohadikusumo’ PT ITCI Kartika Utama has 173,395 hectares of land which stretches across Penajam Paser Utara, Kutai Kertanegata and West Kutai.
Furthermore, Pandjaitan controlled mining land and oil palm plantations in Muara Jawa Kukar District, Kutai Kartanegara Regency. At the end of February 2019, the minister claimed to have owned 6,000 hectares of state land in East Kalimantan, for coal mining activities. The land has been granted a concession license and is still being produced.
The Bakrie Group also own land in Kalimantan. PT Kaltim Prima Coal, unit of PT Bumi Resources Tbk (IDX: BUMI) has coal mining business located in East Kutai with an area of 84,938 hectares. BUMI controlled KPC’ share together with India’ Tata Power 30 percent and China Investment Co. Ltd., 19 percent.
Next is Prabowo Subianto’ mate in the 2019 Presidential Election, Uno and his partner Soerdjaja. Their’ business footprint in East Kalimantan appeared at PT Adaro Energy Tbk (IDX: ADRO). The two businessmen is listed as one of the owners of PT Saratoga Investama Tbk (IDX: SRTG), which holds 15 percent of Adaro’ shares.
Beside them, Adaro’ shareholders are TP Rachmat family, the Thohir family, and Subianto family unified their share ownership in the auspices of PT Adaro Strategic Investment.
JATAM has criticized the government’ plan. According to the organization, the idea was not based on scientific studies and no data on social environmental. In their views, the party that benefited the most from moving the capital was the owner of the mining concession and other businesses in the district.
JATAM assesses that the decision of the location of the new capital is no more than political compensation and for the post-2019 Presidential Election project.
by Marcel Gual, TIS Intelligence and TheInsiderStories Team