NGO Accuses Local Authority of Abuse of Power, Seeks KPK and National-Level Intervention
A high-profile land dispute involving the former Hotel Pura Jaya in Batam has escalated, with allegations of corruption, land mafia involvement, and illegal demolition sparking outrage from civil society and business stakeholders.
The case revolves around the sudden revocation of land allocation by BP Batam, leading to the destruction of Hotel Pura Jaya’s premises—allegedly worth Rp900 billion (approx. SGD 72.9 million)—and the loss of 300 jobs. Investigations led by an anti-corruption NGO have highlighted serious legal and ethical violations.
Accusations of Power Abuse and Gratuity
The NGO Gerakan Tuntas Korupsi (GETUK), led by Jusri Sabri, has identified three core issues in the controversial land revocation case: abuse of authority, suspected gratuities, and the demolition of property without legal notice. Citing Article 3 of Law No. 31 of 1999 on Corruption, Jusri emphasized that government officials who abuse their power can face life imprisonment or a maximum of 20 years in jail and fines up to Rp1 billion. He stated that the entire process of reallocating the 300,000-square-meter site was suspiciously swift, completed within 15 days, and allegedly coordinated with private interests.
Rapid Land Transfer and Alleged Mafia Links
The swift issuance of UWT (Annual Land Obligation) receipts outside official BP Batam channels has led to accusations of a deeply rooted land mafia. These documents were reportedly released by unauthorized individuals, bypassing standard protocols, which enabled companies to obtain control over prime property previously held for decades. Witnesses allege that the demolished site, worth over Rp900 billion, was handed over to a new investor almost immediately, suggesting backdoor arrangements and possible bribery.
Business Impact and Job Losses
Rury Afriansyah, Director of PT Dani Tasha Lestari and owner of Hotel Pura Jaya, reported massive financial losses and workforce layoffs as a result of the demolition. “Our 300 employees, mostly locals from Kepri, lost their livelihoods overnight,” he said. He pledged full cooperation with GETUK’s efforts to escalate the case to the Corruption Eradication Commission (KPK), including the submission of supporting documents and financial records.
GETUK has vowed to file formal reports to the KPK, the Financial Transaction Reports and Analysis Center (PPATK), and even President Prabowo Subianto and the national legislature (DPR RI). Jusri Sabri emphasized the need to expose what he described as “an entrenched system of coordinated land seizures in Batam,” demanding urgent national attention to protect legitimate investors and local business operators.
Pattern of Strategic Land Grabs
According to the group’s findings, refusal to pay under-the-table fees during UWT renewal processes could result in lease denial and subsequent land seizure. The demolition of Hotel Pura Jaya was reportedly executed under the protection of the Tim Terpadu task force—originally intended for clearing illegal structures—raising further concerns about misuse of state apparatus to serve private interests.
This escalating scandal may significantly impact investor confidence in Batam, a strategic economic zone often observed by Singaporean and international stakeholders. The dispute reveals the risks of opaque governance in land administration, which could deter foreign investment and damage bilateral trust if left unchecked.
Sources: Haluan Kepri (2025), Kepri Raya (2025)
Keywords: Batam Land, Hotel Demolition, Mafia Land Scandal, Indonesian Anti-Corruption
