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If you have been browsing through pages in a number of national print media, in the last few weeks you will find a massive advertisement of apartment sales in the city of Meikarta. Likewise, if you visit the malls owned by Lippo Group, you will instead find the counter sales of Meikarta city.
Promotion of the city to be built by business group owned by tycoon James Riady was very incentive. In Kompas newspaper they put a two-page color display ad. While in the daily Media Indonesia (22/5) even up to five pages of color.
The design, visuals and promised promotions are very interesting. This is a city in Cikarang, Bekasi, a fast growing region and promised to be the most modern, most beautiful city with the most comprehensive infrastructure in Southeast Asia.
Not only that promised by Lippo. Area of 500 hectares is also connected with various modes of transportation that is now being built by the government, among others, the rapid train Jakarta-Bandung. Not to mention a range of facilities such as the construction of Patimban Deep Seaport, the construction of the Kertajati international airport, and the construction of the Jakarta-Cikampek Elevated Higway toll road.
Who is not tempted? Media announces when the initial sale on May 13 in Orange County Lippo Cikarang, the prospective buyers come flocking. But do not always hastily decide to buy before fully acquiring and understanding the product information you will buy.
West Java Vice Governor Deddy Mizwar said he was surprised to learn that Lippo Group has marketed the "new city". Based on data from West Java Province, Meikarta does not have permission. In the provincial layout, the "city" is also not in the planning.
West Java provincial government has spatial plan in the form of development of Metropolitan city of Bogor-Depok-Bekasi-Karawang and Purwakarta (Bodebekarpur) to balance the growth of Jakarta.
So how may suddenly appear "giant city" Meikarta? This is really a new "miracle" on the eastern outskirts of Bekasi Regency. A gigantic project worth Rp 278 trillion and is the largest project in 67 years of Lippo's founding history, suddenly can just pop out from the face of the earth.
It takes a super high level of magic to make it happen.
Country within country#
In a press release submitted to the media, Lippo Group said the preparation of Meikarta city has started since 2014. In the first phase of land to be built 22 million m2 for housing as many as 250 thousand units and can accommodate 1 million people. It is expected that December 2018 is ready for habitation.
The price of land in the Meikarta region is priced at Rp12.5 million / m2, according to their 50 percent lower price in the Bekasi-Cikarang corridor that has reached Rp 18-20 million / m2. This price is much higher and doubled compared to some locations in Bandung.
Physical construction has begun since January 2016, by building as well as 100 skyscrapers with a height of 35-46 floors each.
Planning is very mature and well planned. But again surprisingly how could the provincial government of West Java and Bekasi regency do not know and have never issued permission. Vice Governor of West Java Deddy Mizwar was so upset to call "Lippo like country in the country."
The style of Lippo reminds us of the big developers in the Jakarta Bay reclamation project. The developers in this area have also advertised their products to the media in China, whereas the licensing has not been completed yet. They seem to belong to a group of entrepreneurs who embrace the idea of "Sell it first, a new permit is taken care of later."
The total value of the entire project in Jakarta Bay for 5,100 hectares is estimated to reach Rp 500 trillion, while Meikarta is Rp 278 trillion. When the project is finished, its economic value can reach tens or even hundreds of times.
However, please note the reclamation of Jakarta Bay is done by 9 developers, while Meikarta is a Lippo project that uses its own funds by holding several foreign partners. You can imagine how powerful the business power of business group pioneered by this Moctar Riady tycoon.
Rapid Jakarta-Bandung railway project#
Consider the price of land offered by Lippo Rp 12.5 million / m2. This figure is fantastic. Why can it be so expensive? Lippo reason for having a lot of transportation access. One of them is the Jakarta-Bandung railway line.
Still remember about the controversy plans for the 142-km Shinkansen line? Director of PT KAI Ignasius Jonan is a strong opponent of the project. According to him this project is not fair and no urgency built. Especially if the project is financed with APBN funds.
Jonan considers it much more important to develop the Trans-Sumatra, Trans-Kalimantan, Trans-Sulawesi or Trans-Papua railway projects. Jonan is very correct, because the Jakarta-Bandung line is connected with the Purbaleunyi toll line, as well as the railway line. Especially for railways, living developed multiple segments double track rail.
Jonan's opposition continues even when he is believed to be Minister of Transportation Jokowi. He refused to attend when President Jokowi did ground breaking, as a token of the start of the project. But Jonan seems to lose the lobby compared to SOE Minister Rini Soemarno who initiated the project.
Short story of the project finally keep running with the designation of China Railway International. Jonan bounced from his position as Minister of Transportation. The appointment of the Chinese company also caused controversy and slightly disrupted relations with Japan. The consortium of Japanese companies that are also eyeing the project is losing, whereas technology is much more trusted and experienced. The Chinese political and business lobby began to show off its tajis.
The total project cost is USD 5.5 billion or at the rate of Rp 13,600 / USD, then the project value is equivalent to Rp 74.8 trillion. 75 percent of the funds are loans from the China Development Bank (CDB).
The executor of the project is PT Kereta Bang Indonesia, with shares owned by PT Pilar Sinergi BUMN, consisting of 4 SOEs, namely PT Wijaya Karya (Persero) Tbk, PT Jasa Marga (Persero) Tbk, PT Perkebunan Nusantara VIII (Persero) and PT Kereta Api Indonesia (Persero).
It was not just Jonan who opposed the project. Many people are concerned about the project funded by mortgaging the assets of 4 SOEs. If it fails, the assets of 4 SOEs will be at stake.
Through its investments, China often implements a strategy called the Turnkey Project. This is a foreign investment model that China offers to the requester country in one package. Starting from funding, machinery, raw materials, management, experts, even to the rough porters dropped from China.
Turnkey Project mode is successfully run in Africa. Chinese citizens of large-scale migration are not even a few who marry local residents. BBC Television once made an interesting report about Chinese investment in the Gambia and how they then mastered the country's economy and politics.
Project aid and Chinese labor also flooded projects in Zambia, Gabon, Angola and the newly formed South Sudan state.
The clutches of Chinese investment nails also occur in Sri Lanka. They built a lot of infrastructure such as airports and seaports in Hambantota.
With millions of dollars in Chinese aid, the lighthouse project was built. But because of its considerable distance -250 Km from the capital of Colombo-the number of passengers lonely, eventually the airport project was a loss. Forbes magazine once made an interesting report and described Hambantota airport as the most deserted international airport in the world.
Sri Lanka can not pay its debts to China for USD 1.1 billion. In exchange Srilanka handed over the port's management to Chinese companies. Diplomatic sources say the seaports were prepared by China as their submarine base to oversee the South China Sea.
This is an example of assimetris war that is often mentioned by TNI Commander General Gatot Nurmantyo in various occasions.
With the sudden emergence of the city of Meikarta, the public became ngeh and began mengait-ngaitkan with fast rail project Jakarta-Bandung. Borrowing the title of RA Kartini book we can call it "Habis Kereta Api Jakarta-Bandung, the city of Meikarta."
The emergence of the town of Meikarta taken from the name of the mother of James Riady named May, once again show the expertise and toughness of the business lobby of the Riady family. As a businessperson as well as a political lobby, they have world class. Step them a hundred and even a thousand steps ahead.
They can change the land where the 'jin waste child' at the eastern end of the Cikarang area, becomes a priceless pearl expanse.
The Riady Family's expertise has been proven by their entry into the center of power in the United States government during the time of Bill Clinton becoming president. They can even influence US business policy, politics and diplomacy. William Safire describes their actions very interestingly in the New York Times.
So if only the level of Indonesia, let alone Jabar, make them only anchovy. Classes are sneaky. Through the strength of the funds and the expertise of its political lobby, they are accustomed to "rearing" the authorities.
His sense of smell and political instincts are very sharp. They could even recognize Bill Clinton would become a US ruler since he was still in the small town of Little Rock in the state of Arkansas.
In Indonesia, this family is also touted as the tycoon's general secretary in political lobbies including in election and election funding. But like, sorry, fart, this high-level political lobby can smell it, but it's hard to prove it.
Impact on the Election of Jabar 2018#
Seeing the political dynamics in Jakarta are closely related to the interests of the tycoon, especially the reclamation project, it is certain that the controversy of Meikarta will affect and determine the elections of West Java.
Jabar elections will be held in June 2018. The first residence of Meikarta city is planned to be handed over in December 2018. Lippo certainly does not want its masterpiece project to be disturbed, if the elected governor is not in line and supports their biggest project throughout the 67 years the business empire stands.
Taking his mother's name, James Meikarta seems to be no longer a project. But it has become a passion. So no word should fail.
Deddy Mizwar's loud attitude that warns Lippo to be careful, do not make "state within the country" can be a signal where their political will will be directed. If Deddy Mizwar can not be influenced and invited to speak, it is very logical if they glance, or maybe even prepare another candidate for governor.
Politics and business can not be put together. Ideal politics, talking how to serve the interests of citizens as much as possible. While the business, talking how to benefit from citizens as much as possible.
Unfortunately in direct democracy, the practice shows otherwise. Most politicians try to get the support of the citizens as much as possible and then they serve a small group of entrepreneurs who have spent a lot of money to finance his campaign.
