Action urged over public facilities<\/p>\n
JAKARTA (JP): City councilors said yesterday they expected
\nJakarta's next governor to aggressively tackle one of the city's
\noldest problems: urging real-estate developers to abide by their
\nobligations to construct social and public facilities.<\/p>\n
They made the remarks because they said many developers still
\nfailed to fulfill their obligations. This was in spite of strong
\nlegal backing, including Presidential Decree No.5\/1974, a
\nministerial regulation and gubernatorial decree and instructions.<\/p>\n
Incumbent Governor Surjadi Soedirdja's term of office ends on
\nOct. 5. Three candidates for the governorship, including Jakarta
\nMilitary Commander Maj. Gen. Sutiyoso, have been proposed by the
\nCity Council to the Ministry of Home Affairs.<\/p>\n
Councilor Helmy AR Syihab of Commission D for development
\naffairs said that social and public facilities to be built by
\ndevelopers would belong to the city administration.<\/p>\n
\"The failure to collect social and public facilities from
\ndevelopers is caused mainly by city officials' lack of
\n'willingness'. The new governor is responsible for the collection
\nof the facilities,\" Helmy said.<\/p>\n
Data shows that the municipality still has to collect around
\n1.8 million square meters of social and public facilities from
\ndevelopers.<\/p>\n
According to the presidential decree and minister of home
\naffairs regulations No. 5\/1974 and No.1\/1987, developers'
\nobligations regarding social and public facilities cover 40
\npercent of their project's area.<\/p>\n
Gubernatorial decree No. 540\/1990 also stipulates that the
\nsocial and public facilities, ranging from school buildings,
\nplaces of worship and parks to low-cost apartments have to be
\nhanded over to the municipality as city property.<\/p>\n
Saud Rachman of Commission D for development affairs said that
\nbased on the governor's instruction No. 134\/1996, developers who
\ncould not build the facilities could pay compensation to the
\nadministration. This would be used to build low-cost apartments.<\/p>\n
\"But in reality the developers are reluctant to pay the
\ncompensation as well,\" he said.<\/p>\n
He calculated that if the land price of the 1.8 million square
\nmeters of facilities which the developers owed was set at Rp
\n200,000 (US$75.4) per square meter, the financial losses borne by
\nthe city reached about Rp 360 billion.<\/p>\n
Upto last June the municipality had issued 2,070 land permits
\nfor developers, of which only 1,883 are still active. The
\nremainder are no longer effective because their owners have
\ndeclared bankruptcy.<\/p>\n
The data show that only 26 land permitholders have fulfilled
\ntheir obligations.<\/p>\n
At present, Saud said, the municipality was still issuing new
\npermits for developers even though many still declined to comply
\nwith the regulations.<\/p>\n
\"I don't understand why this is so. The municipality should
\ncollect the city's assets first,\" Saud said. (ste)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/action-urged-over-public-facilities-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}