Developers must heed economic gap, says Rais<\/p>\n
JAKARTA (JP): Deputy Governor for Economy and Development
\nAffairs TB.M. Rais told developers who build luxury housing and
\ncommercial complexes to watch out for Jakarta's economic gap.<\/p>\n
Addressing the second convention of the city branch of the
\nAssociation of Indonesian Developers (REI), Rais said
\nproviding public facilities is one way to prevent a wider gap.<\/p>\n
"It is not fair," Rais said, if a private developer profits
\nwhile neighbors of the project lack infrastructure.<\/p>\n
Potential "social problems," or the envy of those living
\nnearby the projects are carried out, are likely to affect the
\nlocal real estate and business climate, he said.<\/p>\n
Recently, the city council urged mayors to demand that 77
\ndevelopers fulfill their obligations to build local facilities,
\nwhich are worth at least Rp 600 billion (US$255.76 million).<\/p>\n
In North Jakarta alone, nine developers have yet to begin work
\non rehabilitating eight state-owned elementary schools and one
\njunior high school.<\/p>\n
With so much work to be done, Rais said of this evening's
\nelection of a new board of executives, "I hope candidates (for
\nthe 1996-1999 period) will not only be busy jostling for seats."<\/p>\n
"The new board must be active in prodding members who have not
\nmet their obligations."<\/p>\n
A 1990 gubernatorial ruling, based on a decree of the Ministry
\nof Home Affairs, states that developers must provide 20 percent
\nof their plots for public facilities such as schools and places
\nof worship.<\/p>\n
The goal of this provision is to ensure that communities
\nbenefit from private sector development.<\/p>\n
As land is becoming increasingly scarce, Rais said he hoped
\nREI would encourage members to seek ways for sustainable
\ndevelopment. The city is conducting several programs to improve
\nthe environment, he said, "but many developers do not have much
\nconcern yet."<\/p>\n
The Association's central board is working out environmental
\nstandards for real estate development with the State Ministry of
\nEnvironment.<\/p>\n
In hope that the municipality and REI will create a closer
\npartnership, Rais urged the Association to forge ties with
\nseveral other organizations representing contractors, architects,
\nand lawyers.<\/p>\n
Yesterday's session of the two-day convention heard
\npresentations from all five mayoralties on real estate
\nopportunities in their areas.<\/p>\n
Outgoing chairman Nugroho Suksmanto, a founder of REI's city
\nbranch in 1993, said the session was held to pave the way for
\nmore "openness" between the bureaucracy and developers.<\/p>\n
"This is to prevent possible feelings that a mayoralty prefers
\none developer over another," Nugroho said. But developers uphold
\ntheir half of responsibilities, and must be active in asking for
\ninformation.<\/p>\n
A representative of the East Jakarta mayoralty agreed, saying
\nthat developers should look to plans of the new business
\ndistrict.<\/p>\n
Candidates for the board of directors include Yan Mogi,
\ncurrent secretary of the Association's city board, and Lukman
\nPurnomosidi, of the state-owned company PT Wijaya Karya. Nugroho,
\nwho leads the privately-held PT Abadi Guna Papan, declined to run
\nfor a second term. (anr)<\/p>",
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