Administration to review decree on developers<\/p>\n
JAKARTA (JP): The city administration is reviewing a loop-hole
\nriddled gubernatorial decree stipulating that developers must
\nbuild low cost apartments.<\/p>\n
The Assistant City Secretary for Administrative and
\nDevelopment Affairs, Prawoto Danoemihardjo, said yesterday that
\nDecree No. 540\/1990 does to have the legal clout necessary to
\nforce developers of luxury apartments to set aside 20 percent of
\nthe commercial site for low-cost apartments.<\/p>\n
Prawoto said that the decree does not clearly define what a
\ncommercial site is. The decree only stipulates that housing
\ndevelopers should provide 20 percent of their commercial sites
\nfor low-cost apartments.<\/p>\n
Prawoto said the use of the word \"commercial\" has weakened the
\ndecree. Usually shops and other business sites are defined as
\ncommercial sites. But now, many people consider houses as
\ncommercial sites because they can be sold.<\/p>\n
\"So now the city administration is trying to formulate a
\ndecree that contains a clearer definition of commercial sites,\"
\nhe said.<\/p>\n
The review is being carried out by the office of the deputy
\ngovernor for economic and development affairs.<\/p>\n
Prawoto did not mention when the process will be completed.<\/p>\n
He said the administration has tried to be flexible by
\nallowing developers to build the low-cost apartments on locations
\noutside of the luxury apartment complexes they build.<\/p>\n
However, many developers continue to be reluctant to build
\nlow-cost apartment houses. They see the decree as a burden and
\nsource of financial losses.<\/p>\n
The administration has ruled that low-cost apartments be sold
\nat 50 percent less than the construction costs in an effort to
\nhelp the needy obtain housing.<\/p>\n
There are 70 developers who have been operating in Jakarta in
\nsince 1991, but only four have abided by the decree. They have
\nconstructed a total of 988 apartments for low-income people.<\/p>\n
The four developers are PT Danayasa Arthatama with 240 units
\nin Tambora, West Jakarta; PT Catur Swasakti Utama with 160 units
\nin Penjaringan, West Jakarta, and PT Kuningan Persada with 292
\nunits in Tanah Tinggi and another 296 units in Bendungan Hilir,
\nCentral Jakarta.<\/p>\n
PT Mandara Permai is currently building 3,000 low-cost
\napartments in Pantai Indah Kapuk, West Jakarta. The project is
\nscheduled for completion by the end of 1997.<\/p>\n
The private developers' contribution of providing low-income
\npeople with apartments is vital because the administration can
\nbuild only 3,150 units per year, or 30 percent of the total
\ndemand. The total demand is projected at 10,500 units per annum.<\/p>\n
A total of 7,163 low-cost apartments have been built in the
\ncapital since 1985. Their sizes vary, ranging from 18 square
\nmeters to 54 square meters. (yns)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/administration-to-review-decree-on-developers-1447893297",
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