Developers offer cash in place of apartments<\/p>\n
JAKARTA (JP): The city administration is still studying a
\nproposal from real estate developers that would allow them to
\ngive cash directly to the administration for each exclusive
\nhousing complex built in lieu of their obligation to build low-
\ncost apartments.<\/p>\n
Governor Surjadi Soedirdja said yesterday that his office is
\nstill studying the proposal and has not made a decision.<\/p>\n
\"Discussion of the subject is not finished,\" Surjadi told
\nreporters at City Hall.<\/p>\n
However, the governor stressed that the city administration
\nwould continue to see to it that real estate housing developers
\ncomply with their obligation to build low-cost apartments.<\/p>\n
The city administration reported that since the decree was
\nintroduced in 1990, 70 developers in the city have been required
\nto build low-cost apartments.<\/p>\n
About nine of these developers have been pushing to change the
\n1990 decree.<\/p>\n
Based on Gubernatorial Decree No. 540\/1990, real estate
\ndevelopers must allocate 20 percent of their total budgets to
\nprojects for low-income people.<\/p>\n
The decree is part of the city's efforts to provide decent
\nalternatives for those living in slum areas.<\/p>\n
According to Prawoto Danoemihardjo, the city secretary's
\nassistant for development administration affairs, there are
\nseveral options available.<\/p>\n
Developers, he said, can build low-cost apartments within
\ntheir real estate project but, in return, must give the city
\nadministration the authority to manage and sell the apartments.<\/p>\n
The developers can also build the apartments within their real
\nestate projects and manage and sell it themselves. The city
\nadministration provides the land while the developers build the
\napartment.<\/p>\n
\"But the city administration has the authority to set the
\nprice of the apartment units,\" Prawoto said.<\/p>\n
Several low-cost apartments have already been built in Tebet,
\nSouth Jakarta, Bendungan Hilir in Central Jakarta and Penjaringan
\nin West Jakarta.<\/p>\n
Helmy A. R. Syihab, chairman of the City Council's Commission
\nC in charge of economic affairs, urged the city administration to
\nreject the proposal, saying that there is no guarantee the cash
\nwill be used properly.<\/p>\n
\"The cash will go to the administration's coffers and nobody
\nwill know for sure if the money is being used to construct low-
\ncost apartments. There is also the possibility that the money
\nallocated for construction will be lower than the cash actually
\ngiven by the developers,\" Helmy said.<\/p>\n
Thus, he added, low-cost apartment building targets would not
\nbe achieved.<\/p>\n
Helmy said the cash given by the developers might not be
\nenough to build the apartments because prices of building
\nmaterials have increased.<\/p>\n
\"Therefore, it would be better if the developers built
\napartments rather than give cash to the city administration,\"
\nHelmy said. (yns)<\/p>",
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