Jakarta. The government on Thursday pledged to use the former Sultan Hotel property for the benefit of the public after reclaiming the site following a court-ordered enforcement action in Jakarta’s Senayan district.

The statement came as authorities moved to take possession of the property, triggering clashes between security personnel and hundreds of protesters who attempted to block the operation. Demonstrators threw rocks and other objects at officers, prompting riot police to deploy water cannons to disperse the crowd.

The enforcement action followed a ruling by the Central Jakarta District Court in late 2025 that found the building-use rights held by property developer and hotel operator Indobuildco had expired in 2023 and were not renewed by the government. The court ordered the company to vacate the premises and return the property to the state.

The court also ordered Indobuildco to pay approximately $45.4 million in unpaid land-use royalties owed to the government since 2007.

Speaking at the site, Deputy State Secretary Bambang Eko Suhariyanto said the land on which the Sultan Hotel stands was originally acquired by the government in 1959 to support preparations for the 1962 Asian Games in Jakarta.

“This asset must be utilized to the greatest extent possible for the prosperity and welfare of the people,” Bambang said.

According to him, President Prabowo Subianto has instructed government agencies to reclaim state-owned assets that have been controlled by other parties and ensure they are managed in line with the public interest.

“For roughly 50 years, the former Sultan Hotel assets were utilized by Indobuildco,” he said. “Now that they have returned to state ownership, they will be used for the benefit of the wider community.”

Chandra Hamzah, legal counsel for the Gelora Bung Karno Sports Complex Management Center, said the dispute between the government and Indobuildco had lasted nearly two decades before culminating in the execution of the court order.

He argued that the lengthy legal process demonstrated the government’s commitment to exhausting all available legal avenues before proceeding with enforcement.

“This proves that the government and the state have complied with all applicable legal procedures,” Chandra said. “The court has now issued an order for the execution of the vacating process, and today the Central Jakarta District Court is carrying out that order.”

Chandra added that the court had ruled that the land, buildings, and all attached assets within the former Sultan Hotel complex constitute state property and are officially recorded as government assets.

Government officials stressed that ownership of the land had never been transferred or sold to Indobuildco. The company held only building-use rights on state-owned land, a form of tenure that does not confer ownership and had expired without renewal.

The situation at the site became tense as demonstrators claiming to represent hotel employees and indigenous business interests protested the eviction order. Despite the unrest, authorities said the operation remained under control under heavy security provided by police and personnel from the Gelora Bung Karno Sports Complex.

The government has not yet announced specific plans for the future use of the reclaimed property.

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