ITF Canceled, Jakpro Can Lose Hundreds Of Billions And Threatened With Bad Reputation

JAKARTA - It was revealed that the BUMD PT Jakarta Propertindo (Jakpro) lost hundreds of billions of rupiah if the Intermediate Treatment Facility (ITF) project was completely canceled. This was stated in a meeting of Commission B and C of the DKI Jakarta DPRD.

Jakpro became a BUMD assigned by the DKI Provincial Government to build the Sunter ITF. It was planned for years until the initial capital began to be budgeted, but the Sunter ITF project was canceled this year and there is no clarity regarding the continuation of the project next year.

Member of Commission C DPRD DKI Jakarta S. Andyka questioned what the DKI Provincial Government would do if Jakpro had spent hundreds of billions of rupiah on Sunter's ITF planning and the company's funds could not be returned if the project was canceled.

"Has it been considered, have we studied with 3 losses if the ITF does not work? Who is responsible for this loss?" said Andyka during a working meeting with the DKI Provincial Government at the DKI Jakarta DPRD building, Wednesday, August 9.

Andyka also admitted that he was surprised by the attitude of canceling the ITF. Given, apart from losing money, Jakpro could lose its good reputation as a regional company from other company partners.

"Not to mention from a legal point of view, not to mention the commitment of Jakpro himself in the eyes of auction followers and so on. Don't you think about it, suddenly issuing an canceled statement?" he said.

The DKI Provincial Government previously explained that the cancellation of the Sunter ITF was carried out on the basis of concerns that the government would not be able to pay the cost of managing waste or tipping fees to private partners for decades.

Based on the results of a feasibility study, the DKI Provincial Government must pay a tipping fee of Rp. 500 thousand to Rp. 700 thousand per tonne of waste processing in the period of 20 to 30 years.

Jakpro also outlined the risk of loss if the Sunter ITF and the intermediate waste processing facility (FPSA) in the western service area were cancelled.

First, there is the potential for a sink cost from Jakpro's investment value in JSL which has been issued amounting to Rp188.7 billion, including the cost of taking over Fortum's shares (forms of prospective ITF project partners) which will be a loss.

Second, there is the potential for a sink cost from Jakpro's investment value on payments for the use of the Sunter ITF land amounting to Rp1.4 billion. Third, the loss of trust from investors and business actors to PT Jakpro for projects in the future due to bad precedents.