{
    "success": true,
    "data": {
        "id": 1894285,
        "msgid": "developers-cry-foul-as-purchased-land-becomes-unbuildable-due-to-new-regulations-1785563523",
        "date": "2026-08-01 11:30:02",
        "title": "Developers Cry Foul as Purchased Land Becomes Unbuildable Due to New Regulations",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Property",
        "summary": "Property developers are facing significant financial strain as land previously designated for residential use is being reclassified under Protected Paddy Field (LSD) regulations. This policy shift has left many developers with unusable plots, contributing to a 24% decline in subsidized housing targets during the first half of the year.",
        "content": "<p>The issue of Protected Paddy Field (LSD) designation remains a major\nobstacle to the development of subsidised housing. This situation is\nbelieved to be disrupting the supply of land available for development,\nparticularly in regions with high housing demand.<\/p>\n<p>Many developers have already purchased land within zones permitted\nfor residential construction, only to find their status changed due to\nLSD regulations. Consequently, several developers are facing capital\ndifficulties as they are unable to build or sell houses on these\nplots.<\/p>\n<p>\u201cIt is not exactly a collapse, but they are being suffocated; they\nare at their limit. They are merely exhausting their existing land, but\nthe land they have already purchased is being hit by LSD regulations,\u201d\nsaid Deddy Indrasetiawan, General Chairman of the Indonesian Housing and\nResidential Developers Association (APERSI), to CNBC Indonesia.<\/p>\n<p>This means a number of developers have purchased land that previously\naligned with regional spatial planning as residential zones, but has\nsince been categorised as LSD, rendering it unusable.<\/p>\n<p>\u201cWe did not purchase the land to change its function. We checked the\nregional spatial planning and it was a yellow zone, a residential zone.\nHowever, the regulations are reportedly being applied retrospectively,\nwhich is very confusing for us,\u201d added Deddy.<\/p>\n<p>The greatest challenges are expected to occur in West Java and\nBanten. These two regions are major hubs for subsidised housing\ndevelopment, meaning any changes in spatial planning policy will\ndirectly impact developer activities.<\/p>\n<p>\u201cThe most difficult areas, according to the Director General of\nSpatial Planning at the Ministry of ATR\/BPN, are West Java and\nBanten\u2014specifically Banten, particularly Tangerang Regency,\u201d he\nnoted.<\/p>\n<p>APERSI assesses that the uncertainty regarding land status is\nbeginning to affect the performance of the subsidised housing sector.\nMeanwhile, developers continue to face other hurdles, ranging from\nlicensing processes to the limited availability of build-ready land.<\/p>\n<p>\u201cCertainly, as colleagues can see that the achievement of subsidised\nhousing targets in the first semester has dropped by 24% compared to\nlast year. This is due to land availability, as well as rising licensing\ncosts and material prices,\u201d he concluded.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/developers-cry-foul-as-purchased-land-becomes-unbuildable-due-to-new-regulations-1785563523",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}