In Reply to: Interesting development posted by Pak_Tony on Tuesday, 24. March 2009 at 07:37 Bali Time:
This started with the Jakarta Globe reporting that the project had been cancelled back on March 14th. Since then, the Jakarta Globe has had to print a 'correction', and they have been berated by the BKPM for writing the story, which they insist is untrue, and which has been picked up by media outlets around the world.
Following the article printed by the Jakarta Globe on 14th March, they then printed another on 17th March in which the Indonesian government denied the project is dead, and then the BKPM wrote the following letter which was published 19th March:
We were surprised to learn about your reporting on page one of the Jakarta Globe on Saturday, March 14, and Monday, March 16.
The two articles directly highlighted the Investment Coordinating Board, or BKPM, as the lead coordinator for the planned Emaar project in Lombok since 2008. Upon reading the first article, the BKPM immediately commenced an investigation on the latest facts regarding the Lombok Tourism project that Emaar has been fully committed to. The reason for doing so was our belief that your reports were completely in contrast to the reality.
And we were right. Emaar has confirmed that the company still remains committed to the project.
We were even more surprised and disappointed to learn that no one in Emaar was interviewed by the Jakarta Globe to confirm such news. This fact has made your article that quoted Elly Savitri, human resources manager for Emaar Indonesia, absolutely false and unsubstantiated by facts.
The BKPM and Emaar Properties PJSC will continue the commitment to realize a $600 million property investment project in Lombok. The main terms of the joint venture agreement between Emaar and the Bali Tourism Development Corp., a 100 percent-owned legal entity of the State Ministry for State Enterprises, are that the BTDC will inject the land into the project company, and Emaar will develop the site.
Under the terms of the JVA, the BTDC is to comply with the conditions regarding land titles. As the JVA will expire on March 19, 2009, the BKPM, on behalf of the government of Indonesia, in this case the BTDC, has requested an extension, which has been agreed upon by Emaar, due the legislative process.
Mohamed Ali Alabbar, the Emaar chairman, through the chairman of the UAE Chamber of Commerce, has conveyed to the BKPM its agreement to extend the JVA.
We respect critical journalism at its highest value. By the same token, we despise false reporting and suspicious motives due to their lowest morale and most destructive impacts. Your articles have irresponsibly damaged the national investment climate, as it has been widely quoted by other media, locally and internationally.
Considering Globe Media's pro-business and investment platform, I must say the articles are far from your own principles and therefore must be corrected. We will not hesitate to take firm actions, both through the journalistic council as well as the judiciary until this matter is satisfactorily resolved.
We demand a clarification and cooperation from your side to minimize the damage that has been inflicted. I do hope you can take this matter seriously as we have, with the highest priority. To this end, we expect immediate corrective actions from your side.
Muhammad Lutfi
Chairman, Investment Coordinating Board