Developers build houses on industrial estates<\/p>\n
JAKARTA (JP): The Federation of Industrial Estates admitted
\nyesterday that some of its members have been building housing
\nestates and golf courses on land initially acquired to establish
\nindustrial estates.<\/p>\n
Federation Chairman Halim Sahab made the admission in a
\nstatement during a hearing of House Commission VI for industry
\nand investment, in response to legislators' concerns over the
\nincreasing number of golf courses and housing estates sprouting
\non land originally planned for industrial estates.<\/p>\n
Halim said, however, that industrial estates which have
\nchanged their land utilization have done so legally and with
\nsupport from local administrations.<\/p>\n
\"The change in land utilization is possible because local
\nadministrations have been willing to change the companies'
\npermits to ones that allow for the construction of housing
\nestates or golf courses,\" he said.<\/p>\n
\"Additionally many industrial estate companies use part of
\ntheir industrial areas to build housing estates or golf courses
\nand do so under a different company name,\" he added.<\/p>\n
Halim highlighted that there is currently no law against this
\nand pointed out that any changes in land utilization permits are
\nmade under the auspices of the Ministry of Justice.<\/p>\n
He said that local administrations will usually allow such a
\nchange if it conforms with the local site plans.<\/p>\n
\"Since the legality is given by a local administration, it is
\nno longer a problem for the federation,\" he said.<\/p>\n
Legislator Iskandar Mandji of the Golkar faction expressed
\nconcern over such changes because it reduces the size of
\nindustrial estates.<\/p>\n
\"The government has issued many deregulatory measures to
\nstimulate activities in industrial estates and encourage
\nmanufacturing firms to move into the estates, but what good is
\nthis if the estate companies themselves do not make use of this
\nchance,\" he said.<\/p>\n
Iskandar said industrial estate companies lack
\ncompetitiveness, as shown by the reluctance of many manufacturing
\ncompanies to set up factories in industrial estates.<\/p>\n
According to the federation's figures, 2,969 hectares of land
\nin Jakarta have been allocated for industrial estates under the
\nmanagement of four companies. From this total, 99.12 percent has
\nso far been acquired. However, only 453.93 hectares or 15.4
\npercent of the acquired land has been sold to manufacturing
\ncorporations.<\/p>\n
In Tangerang, West Java, nine companies with a total land
\nallocation of 2,150 hectares have managed to acquire 48.84
\npercent of the land they want. But they have only managed to sell
\n80 hectares, or only 7.62 percent of the acquired areas.<\/p>\n
In Serang and Karawang, both also in West Java, 24 industrial
\ncompanies have so far managed to sell only 16.24 percent and
\n14.15 percent of their acquired land respectively.<\/p>\n
In Batam, in Riau province, and East Java, 18 industrial
\ncompanies have managed to sell 16.02 percent and 24.5 percent of
\ntheir acquired land, respectively.<\/p>\n
Iskandar said the small percentage of areas sold to
\nmanufacturing firms shows that industrial estate firms have not
\nyet met the expectations of manufacturing firms.<\/p>\n
Apart from changes in land utilization, he said, another
\nreason that the estates are uncompetitive is the expensive prices
\nof the individual sites.<\/p>\n
Halim said the high prices are due to high land acquisition
\ncosts, caused by legal and illegal fees as well as the need to
\nbuild infrastructure facilities and supporting facilities such as
\nhealth clinics and sports venues.<\/p>\n
\"There is also a law which says that in an acquired area, only
\n70 percent can be used for industrial purposes, while the
\nremaining 30 percent must be allocated for non-commercial
\npurposes and infrastructure facilities,\" he said. (pwn)<\/p>",
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