MICE activities at JCC halted, PT GSP continues legal process

INDUSTRY.co.id - Jakarta - PT Graha Sidang Pratama (PT GSP), the investor and manager of the Jakarta Convention Center (JCC), revealed that the company is currently unable to run Meeting, Incentive, Convention and Exhibition (MICE) activities at the JCC in the Gelora Bung Karno area, Senayan, Jakarta. This condition occurred as a result of the closure of entrance access, demolition of fences and locking of all room doors at the JCC by the Directors of the Bung Karno Gelora Complex Management Center (PPKGBK).

 

“As the investor and manager of the JCC, we can no longer carry out MICE activities and fulfill contracts from clients and business partners that have been signed since early 2024. We are very sorry and regret this situation, especially since the PPKGBK board of directors took over the JCC when the legal process was underway,” said Edwin Sulaeman, General Manager of the JCC in Jakarta, Tuesday (21/01/2025).

 

According to Edwin, his party has received cancellations from a number of clients, both state-owned and private, as a result of the closure of access to the JCC. As a result of the cancellation, MICE activities at the JCC could not run as planned. As a result, many businesses that were already connected to these MICE activities were affected.

 

“For more than 30 years we have built the JCC as the best MICE brand and Indonesian MICE icon with dozens of clients and business partners. The current conditions at the JCC are very dangerous for the MICE industry, especially for businesses that already have business contracts with consumers and markets both from domestic and abroad,” said Edwin.

 

The unilateral takeover action taken by the PPKGBK directors creates a bad precedent for the national MICE industry. Moreover, PPKGBK is currently forcing clients and business partners who have worked with the JCC for decades to transfer their contracts to the Business Service Agency (BLU).

 

According to Edwin, some of JCC's clients and business partners have decided to look for venues outside JCC. This step is an effort from these business actors to obtain business certainty and most importantly get the best service. This is because in the MICE industry, service and network standards will determine the existence of the company.

 

“It has taken us decades to build the JCC's reputation as an internationally recognized MICE center. If this image is damaged, it will be difficult for Indonesia to attract major events in the future,” Edwin clarified.

 

For this reason, PT GSP calls on the government to take immediate steps to create a conducive atmosphere for the sustainability of the MICE industry in Indonesia. “We call for this legal issue not to be used as an excuse to damage the MICE ecosystem, which has a huge impact on the national economy. Every year the MICE industry contributes around Rp 100 trillion, and the JCC contributes 20-30%,” said Edwin.

 

 

Investor Protection

Yosep Badoeda, PT GSP's attorney, regretted the treatment of PPKGBK directors to PT GSP as the JCC management partner that has been running together for decades. Moreover, the forced takeover of the JCC was carried out when the legal process was ongoing.

 

“The action of the PPKGBK directors to take over the JCC while the legal process is still ongoing injures the principles of justice and applicable legal principles. PPKGBK directors as an extension of the government should be a good example during the legal process, not the other way around which shows arrogance and a show of power,” Yosep explained.

 

That’s why, Yosep hopes that the government will look at this issue more broadly and create a conducive atmosphere for the MICE industry in Indonesia. Given that the JCC has a strategic role as the center of MICE activities, protecting this ecosystem is very important. “By maintaining the stability of the JCC, the positive impact on the national economy and the many businesses that depend on this industry can be maintained,” he revealed.

 

Yosep emphasized that his party will continue the civil lawsuit over the violation of article 8.2 of the BOT agreement agreed by PT GSP and PPKGBK in 1991 to the Central Jakarta District Court. According to the clause, PT GSP became the first party to continue the extension of the JCC management cooperation. However, the PPKGBK directors never considered article 8.2 and were only guided by article 8.1 of the cooperation contract where PT GSP had to hand over the BOT assets when the contract expired on October 21, 2024.

 

“We invested and built JCC into a MICE icon with a clear and measurable agreement. Therefore, as an investor, PT GSP only asks the government to provide legal certainty for the 1991 agreement,” said Yosep.***