The Aguan Intervention

Additional contributions have become an imposing requirement for land reclamation developers on Jakarta Bay. After they agreed to donate 35 percent of the land on each island as open green areas, and another 5 percent for public and special-use facilities, Jakarta Governor Basuki Tjahaja Purnama (Ahok) still required them to deposit 15 percent multiplied by the tax value multiplied by the price of saleable land.

This calculation is then translated into the cost of constructing various mainland facilities in Jakarta, such as flood-prevention projects. If one refers to the estimated taxable value of the islands when sold-Rp25 million per square meter-the government stands to take in Rp48 trillion from 10 companies creating 17 islands out of reclaimed land.

May 24, 2016