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Jakarta 'chasing' investment at cost to environment

Source
Jakarta Globe - November 23, 2010

Arientha Primanita, Jakarta – Despite warnings by experts that unbridled urban development would harm the environment, a Jakarta official said the economic benefits were too great to resist.

Hasan Basri, the city secretary's economic and administrative assistant, said on Tuesday that although experts lamented the explosion of malls and commercial centers at the expense of green space, the capital needed the revenue. He said retail, trade and service sectors accounted for 72 percent of the city's economy, valued at Rp 757 trillion ($84 billion) last year.

"Investment creates jobs, so when people start demanding that the development of malls and other construction be stopped, that needs to be carefully discussed," Hasan said. He said, however, that the administration would improve the city's investment climate without forsaking environmentally sound spatial planning.

Edi Kuntadi, chairman of the Jakarta branch of the Indonesian Chamber of Commerce and Industry (Kadin), said programs like the one-stop service for investment licenses would make Jakarta a more appealing destination for capital. The service, introduced in September, cut down the time it took for business permits to be issued by the government.

However, Yayat Supriyatna, an urban planning expert from Trisakti University, said the city was chasing investment at the expense of caring for the environment.

He also said the administration had failed to allocate funds from its budget to social services and infrastructure. "The administration easily issues permits for buildings, while things like access to water and good roads are overlooked," the urban planning expert said.

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