Government backs down on housing ban<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The government backed down on Monday from its initial plan to
\ntemporarily halt new construction in greater Jakarta amid strong
\nopposition from various opposition groups, saying it would only
\ntemporarily withhold new licenses for some housing projects.<\/p>\n
Minister of Resettlement and Regional Infrastructure Soenarno,
\nwho stole the headlines in various local papers last week with
\nhis statement regarding the government's plan to temporarily ban
\nhousing development in order to keep more green areas for flood
\ncontrol, denied ever making such a statement.<\/p>\n
\"What I was saying was only that we would not grant any new
\nlicenses to developers for six months. The developers are allowed
\nto continue their housing construction activities,\" he said at a
\nhearing with the House of Representatives's Commission IV for
\ntransportation and infrastructure.<\/p>\n
The hearing was focused on flood prevention after the recent
\ndisaster in several parts of the country, including greater
\nJakarta.<\/p>\n
Many people believe unregulated housing development led to the
\ndepletion of many catchment areas over the past several years
\ncontributing to the flooding.<\/p>\n
The hearing was also attended by executives of the Indonesian
\nReal Estate Association (REI), who repeatedly opposed the
\ngovernment's earlier plan to ban housing development.<\/p>\n
REI has said the suspension plan had threatened REI's plan to
\ndevelop about 90,000 houses in greater Jakarta this year which
\nwill absorb some 900,000 workers and provide Rp 3 trillion
\n(US$294 million) in investment.<\/p>\n
It also said the suspension plan had sparked confusion among
\nbuyers and banks. Some buyers had decided to delay buying houses
\nand banks had become reluctant to lend.<\/p>\n
Some developers planned to sue the government should the
\nlatter press ahead with its suspension plan, he added.<\/p>\n
Several local governments also voiced opposition against the
\nplan, saying that the suspension would only lead to increased
\nunemployment.<\/p>\n
The mounting pressures, along with intensive lobbying by many
\ngroups opposed to the plan, were believed to prompt the
\ngovernment to backtrack from its initial stance.<\/p>\n
Soenarno said that his ministry had asked the governors of
\nJakarta, Banten and West Java to withhold new licenses on housing
\nprojects.<\/p>\n
He noted however it was a request rather than an instruction,
\nciting that the right to issue licenses for housing projects lies
\nwith the local governments and not the central government.<\/p>\n
\"The governors have the authority to issue the licenses, and
\nalso the power to impose sanctions on developers,\" he said.<\/p>\n
During the next six months, the government plans to evaluate
\nall the existing housing projects in greater Jakarta, to
\nascertain whether they follow the existing regulations.<\/p>\n
The House officially supported the government's new position.<\/p>\n
Sumaryoto of the Indonesian Democratic Party of Struggle (PDI-
\nPerjuangan), who also chairs the Commission, said it was
\nunjustifiable for the government to bar housing development if
\nthe developers possessed licenses.<\/p>\n
Had the government moved ahead with its plan to temporarily
\nban housing projects, developers would face a lot of financial
\nburdens, he said.<\/p>\n
REI chairman Yan Mogi also welcomed the government's latest
\ndecision, saying it would bring back certainty to investors.<\/p>\n
\"We support the government's plan to evaluate all of our
\nmembers. But, should the government find any violations by our
\nmembers, our members should be given chances to clarify,\" he
\nsaid.<\/p>\n
Separately, chairman of the Indonesian Environment Forum
\n(WALHI) Emmy Hafidz said she doubted the government's seriousness
\nin thoroughly solving the flood problems in Jakarta.<\/p>\n
She added that, to prove its seriousness, the government
\nshould stop construction in Puncak and order developers to build
\nsmall flats in the Cianjur and Bogor areas so that the areas are
\nable to absorb water efficiently.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/government-backs-down-on-housing-ban-1447893297",
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"sponsor": "Okusi Associates",
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