City developers fail to fulfill commitments<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Most real estate developers in the capital have ignored their
\nobligation to construct low-cost apartments for disadvantaged
\nfamilies in Jakarta.<\/p>\n
According to data provided by the Jakarta Housing Agency, 301
\nout of 367 developers that received permits to construct luxury
\nresidential facilities from 1999 to 2005 failed to fulfill their
\nobligation to build low-cost apartments.<\/p>\n
From 1999 to 2005, developers should have build low-cost
\napartments on around 380,521 square meters of land as a
\nrequirement for building luxury apartments, but so far they have
\nnot fulfilled their obligation.<\/p>\n
\"As the first step to force developers to fulfill their
\nobligation, the governor will summon them next week. We will take
\nfirmer actions if they still ignore their obligation,\" city
\nsecretary Ritola Tasmaya said on Friday.<\/p>\n
Gubernatorial Decree No. 540\/1990 requires all developers
\nconstructing residences on 5,000 square meters of land or a
\nlarger area in the city to construct low-cost apartments on at
\nleast 20 percent of that land.<\/p>\n
The developers, however, may construct the low-cost apartments
\nat other locations or pay a certain fee to the city
\nadministration.<\/p>\n
Ritola said the city administration would punish developers,
\nwho still ignored their obligation after being warned. The
\npunishment could be the suspension of their permits or stopping
\non-going projects, according to Ritola.<\/p>\n
The housing agency has estimated that there are some 40,000
\npoor families in the city, which should be relocated from city
\nslums or riverbanks.<\/p>\n
The city has long planned to build some 3,000 units of low-
\ncost apartments, but it faces difficulty in acquiring land for
\nsuch projects. According to the draft of the city's budget for
\n2006, the city has allocated some Rp 360 billion for low-cost
\napartments.<\/p>\n
The Jakarta Housing Agency is tasked to acquire 20,000 square
\nmeters of land this year in the city, but up until August 2005,
\nthe agency had not acquired any land in the capital, according to
\na progress report.<\/p>\n
Data from the agency also shows that there are some 20,000
\nlow-cost apartments in the city built by a number of agencies,
\nincluding state housing company PT Perumnas, the Jakarta Housing
\nAgency and city developer Prasarana Jaya.<\/p>\n
Many of those low-cost apartments are, however, not occupied
\nby low-income families as they are rented out to middle-class
\nemployees by their owners.<\/p>\n
Governor Sutiyoso has repeatedly said that his administration
\nwould concentrate on the construction of low-cost apartments here
\nin order to eliminate slums in the city.<\/p>\n
He stressed the need for stronger supervision of low-cost
\napartments to make sure that they are not occupied by middle-
\nclass people.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/city-developers-fail-to-fulfill-commitments-1447893297",
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"sponsor": "Okusi Associates",
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