Construction of the 17 artificial islands has started. However, regarding future property development on these islands, the Jakarta City administration is yet to issue construction permits implying that any (property) construction on the reclaimed land is illegal for the time being.

Focus on illegal activities related to land reclamation project off the coast of Jakarta heightened after the country's Corruption Eradication Commission (KPK) arrested Agung Podomoro Land President Director Ariesman Widjaja last week. Widjaja is suspected bribing Muhammad Sanusi, a legislator of the Jakarta provincial assembly for support related to the Pluit City project (Sanusi was also arrested). The Jakarta city council is currently deliberating a new zone and reclamation regulation. Widjaja tried to obtain Sanusi's support in these deliberations. Sanusi is member of Prabowo Subianto's Gerindra faction, which holds 14 percent of votes in Jakarta's city council. Pluit City is a grand residential and commercial area on one of the artificial islands. Listed Agung Podomoro Land is the developer.

Indonesian Consumer Protection Foundation (YLKI) warned investors and consumers saying most property developers engaged in Jakarta's land reclamation project have only obtained principal permits from Jakarta's city administration. However, a land reclamation permit, a permit allowing the use of reclaimed land, and a building construction permit are yet to be issued, pending the zoning and reclamation regulation that is being deliberated. YLKI now requests local authorities to forbid ongoing promotional activities and sales of property on these artificial islands until all permit issues are resolved.

Over the past years the local Jakarta administration has issued principal permits for eight artificial islands to property developers Jakarta Propertindo, Agung Sedayu Group, Agung Podomoro Land, and Intiland Development.

Further Reading:

Giant Sea Wall Jakarta; National Capital Integrated Coastal Development (NCICD)