Developers not monopolizing lands: Minister<\/p>\n
JAKARTA (JP): State Minister of Agrarian Affairs\/Chairman of
\nthe National Land Agency Soni Harsono denied yesterday that 10
\nleading property developers have monopolized land in Jakarta and
\nsurrounding areas.<\/p>\n
\"The developers have acquired the land not for possession
\npurposes but to develop commercial housing complexes on it, \"
\nSoni told reporters after attending a plenary meeting with the
\nHouse of Representatives which discussed a draft law on
\nmortgages.<\/p>\n
The United Development Party faction in the House told the
\nminister in the meeting that most of about 60,000 hectares of
\nland in Jakarta and its surrounding areas have been acquired by
\n10 giant developers.<\/p>\n
Yudo Paripurno, the spokesman of the faction, said that the
\ntotal land holding of the developers was almost as large as the
\ncapital city: 65,000 hectares.<\/p>\n
Minister Sony said: \"All we have to do is to control the land
\nacquisition so that the developers will not acquire the land at
\nlow prices but then sell the houses they build on it for very
\nhigh prices.\"<\/p>\n
He said the government let the private companies build houses
\nbecause the government alone cannot do it.<\/p>\n
He denied that land acquisition by giant developers had become
\nmonopolistic, arguing that most of the developers are public
\ncompanies.<\/p>\n
\"A company that has already gone public belongs to the
\npeople,\" he said.<\/p>\n
He said that there is regulation limiting land acquisition by
\ndevelopers. \"We still refer to the old land regulations,\" he
\nsaid.<\/p>\n
Sony said that there is already a mechanism which regulates
\nacquisition of land by a developer: land can only be purchased
\nafter a \"site permit\" has been obtained from the local
\nadministration.<\/p>\n
The minister said high land prices had been caused by
\nunauthorized brokers.<\/p>\n
\"Their presence and activities are the cause of the mark-ups,\"
\nhe said, adding that both the developers and land owners suffer
\nas a result of their activities.<\/p>\n
Yudo Paripurno, who read the faction's position on the draft
\nlaw on mortgages, said that such monopolistic practices by
\ncertain developers were not in line with President Soeharto's
\nspeech at a National Land Agency meeting in February, in which he
\nsaid that nobody is allowed to acquire land excessively.<\/p>\n
\"Land cannot be speculated in for obtaining great profits,\"
\nthe faction said, quoting Soeharto's speech.<\/p>\n
The head of state also said that land speculation, which has
\nnothing to do with the people's welfare, is against the 1945
\nConstitution.<\/p>\n
Soni said that the developers have paid enough attention to
\nsocial welfare.<\/p>\n
\"The government has come up with the balanced housing concept
\nfor the developers to follow,\" he said.<\/p>\n
\"They have implemented the government's balanced concept on
\nhousing, which stipulates that if a developer builds a luxury
\nhouse they must also construct three middle-class houses and six
\nlow-cost houses,\" he said.<\/p>\n
The rule was promulgated in 1992 by the ministers of home
\naffairs, public works and public housing. (imn)<\/p>",
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