Developers will be required to speed up house construction<\/p>\n
JAKARTA (JP): The government will require real estate
\ndevelopers to accelerate the construction of houses to meet
\nincreasing demand, State Minister of Public Housing Akbar
\nTandjung said here yesterday.<\/p>\n
\"Developers, under a new ruling currently being prepared by
\nthe government, will be required to finish the construction of
\nhouses within five years of receiving building licenses,\" he told
\nCommission V of the House of Representatives (DPR) in a hearing.<\/p>\n
Akbar said the lack of regulations requiring developers to
\naccelerate the construction of houses has given them leeway to
\ndelay their projects.<\/p>\n
During the recently completed Fifth Five-Year Development Plan
\n(Repelita V) period, the government originally set a target of
\n450,000 new houses to be constructed by developers. However, even
\nthough the target was reduced to 350,000 houses, only 321,770
\nunits were constructed between April 1989 and March 1994.<\/p>\n
Of the new houses, 86,104 units were constructed by the state-
\nowned Perum Perumnas, and the rest by private developers.<\/p>\n
Akbar blamed high interest rates for the delays in housing
\nconstruction during the last five years, besides the lack of
\nregulations on the acceleration of housing construction.<\/p>\n
The minister said construction acceleration is necessary
\nbecause developers are expected to construct no less than 500,000
\nhouses during the current Repelita VI period.<\/p>\n
Procedures<\/p>\n
Akbar said that to support the acceleration of housing
\nconstruction, the government will simplify procedures for the
\nissuance of licenses needed for housing projects.<\/p>\n
Members of the commission, which deals with transportation,
\npublic works, tourism, post, telecommunications and public
\nhousing, want the government to set a deadline of five years for
\ndevelopers to complete the construction of houses after they
\nreceive building permits.<\/p>\n
\"I suggest that developers complete housing projects within
\nfive years once building permits are obtained.\" Marsinggih
\nMarnadi, a legislator from the Indonesian Democratic party (PDI)
\nsaid.<\/p>\n
Marsinggih said a long delay in the construction of housing
\ncomplexes will encourage developers to begin speculating on the
\nland, which would result in an increase in land prices.<\/p>\n
Akbar, when asked, declined to say whether the new regulation
\nwill impose sanctions on developers failing to meet the housing
\nconstruction deadlines.<\/p>\n
Marsinggih said the government should revoke the licenses of
\ndevelopers failing to meet the deadlines.(02)<\/p>",
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