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KPK to SOE Minister: Rethink sale plan of office building

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Jakarta Globe - December 19, 2014

Fana F.S. Putra & Lenny Tristia Tambun, Jakarta – The Corruption Eradication Commission, or KPK, could be forced to find office space for part of its operations if State-Owned Enterprises Minister Rini Soemarno proceeds with the sale of her ministry's headquarters.

Rini announced her intention of selling the 22-story building on Jalan Merdeka Selatan, Central Jakarta, earlier this week, arguing it was too large and too expensive to maintain for a ministry staff of merely 250 people.

But the KPK, which also has offices in the building, has asked the minister to reconsider the plan. "[Government] regulation allows her to [sell], but we also have an interest as we have our office and employees there," said KPK spokesperson Johan Budi.

The anti-graft body runs part of its operation on the fifth and fifteenth floors of the building as its Kuningan headquarters in South Jakarta is unable to accommodate its growing staff.

Dahlan Iskan, former minister of state-owned enterprises, had provided the KPK office space until construction of a larger home base was complete. "We had an agreement [with Dahlan]," Johan said. "We were given the opportunity to use the building until our new one has finished construction."

President Joko Widodo on Thursday defended the ministry's much criticized move, saying the sale would provide the ministry with additional funds. A smaller building, he added, would significantly cut costs. "[The move] is part of our efforts to becoming more efficient," Joko said.

The president, however, conceded that Rini has not informed him of the details of the plan, signaling he has yet to issue his approval.

House of Representatives deputy speaker Fahri Hamzah, a vocal opponent of the plan, previously argued the ministry could find other means of saving money and raising funds.

"Why does [the minister] need to sell when the government plans to build so many offices with the state budget. Just cancel those proposals [for new government buildings]," Fahri said. He added that selling a government asset would involve a lengthy and complicated process.

Jakarta Governor Basuki Tjahaja Purnama has already expressed interest in buying the building. It has also been offered to Bank Indonesia and the Financial Services Authority, or OJK.

"We're interested if the City Council agrees," Basuki said on Tuesday, as quoted by Tempo. "Buying land or buildings in Jakarta will not be a loss. It will be profitable, especially if we can get a friendly price."

Basuki conceded he had not decided what he would do with the building, saying only it had many potential uses, including a mall filled with vendors currently selling their food on the streets.

However, City Council speaker Prasetyo Edi Marsudi questioned Basuki's intentions of buying the building, saying the money would be better spent on other infrastructure projects or on improving residents' access to education and health.

"I will ask [Basuki] what he plans to do with the building," Prasetyo told reporters on Thursday. The council speaker noted that the capital is still in possession of many underutilized assets, including those belonging to city-owned enterprises.

Prasetyo's deputy, Triwisaksana, also questioned the proposal. "I don't agree [with the SOE ministry's] plans to sell the building, let alone for the Jakarta government to buy it," he said.

Source: http://thejakartaglobe.beritasatu.com/news/jakarta/kpk-soe-minister-rethink-sale-plan-office-building/

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