Developers told to start building houses again<\/p>\n
JAKARTA (JP): Developers must resume building houses now,
\nbefore an anticipated surge in demand, a senior official from the
\nMinistry of Settlement and Regional Development said on Saturday.<\/p>\n
Opening a property exhibition, director general for
\nResidential Development, Djoko Kirmanto, said many people would
\nenter the housing market soon because of declining interest rates
\nand this month's increase in the salaries of government workers.<\/p>\n
Indonesia's property sector has barely recovered from the 1997
\neconomic crisis, which saw sales of new houses plunge to as low
\nas 55,000 sales last year from a high of 220,000 in 1997. The
\nindustry hopes the sales recovering to 90,000 this year.<\/p>\n
The Indonesia Prime Property Fair 2000 at the Jakarta
\nConvention Center involves 46 housing developers with projects in
\nGreater Jakarta, Depok, Puncak, Sukabumi and Bandung.<\/p>\n
Many of the participants are offering discounts of as much as
\n46 percent to woo buyers attending the fair, which will run
\nthrough May 7.<\/p>\n
The fair organizer, PT Dalas Pro Adhijaya, hoped the event
\nwould see transactions amounting to Rp 138 billion.<\/p>\n
Dalas' president director, Padmiarso M. Widjojo, said, "With
\nlower interest rates, people are thinking that it would be more
\nprofitable for them to invest in property."<\/p>\n
He said now was the right time to buy property, before
\nbuilding material prices increased.<\/p>\n
Djoko said recovery in the housing sector would, through a
\nmultiplier effect, boost development in 140 other related
\nindustries, including cement and roof tiles, which provide for
\nthe lives of many people.<\/p>\n
To help the growth of the industry, Djoko said the government
\nwould assist people from low income groups to buy houses through
\na subsidized credit scheme.<\/p>\n
The housing credit scheme to purchase small and very small
\nhouses offers an annual interest rates of 14 percent compared to
\nthe market rate of 20 percent.<\/p>\n
Djoko said the Ministry of Finance has allocated a small
\nportion of the Rp 1.3 trillion which his ministry proposed to
\nfinance the housing subsidy scheme in the 2000 fiscal year.<\/p>\n
"The government is on a tight budget this year and cannot
\nafford a large subsidy," he said. "But it is aware that the
\nhousing sector is very important to the people and to related
\nindustries." (10)<\/p>",
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