Govt adamant about ban on housing projects<\/p>\n
Moch N. Kurniawan, The Jakarta Post, Jakarta<\/p>\n
The government insisted on Thursday it would go ahead with its
\nplan to temporarily ban all housing development in the Greater
\nJakarta area despite protests from housing developers.<\/p>\n
Minister of Resettlement and Regional Infrastructure Soenarno
\nsaid the move was necessary as part of the efforts to save the
\ncountry from greater economic losses that may result from floods
\nin the future.<\/p>\n
\"Don't only think about property losses. Think about the
\nnational economy which was halted due to the floods,\" he told
\nreporters after the meeting with officials from other ministries
\nand local administrations surrounding Jakarta.<\/p>\n
The meeting was also attended by executives of the Indonesian
\nReal Estate Association (REI), who strongly rejected the
\ngovernment's plan.<\/p>\n
Under the plan, no housing development is permitted in the
\nGreater Jakarta area for between three and six months.<\/p>\n
The plan was initiated following the massive flooding which
\nhit the capital and surrounding areas for several days last week.
\nMany people have blamed it on the dwindling catchment areas in
\nJakarta following the rapid housing development over the past
\nseveral years.<\/p>\n
People say the developers could easily gain licenses to build
\ntheir projects in catchment area thanks to collusion with the
\nlocal governmental officials.<\/p>\n
Soenarno estimated losses resulting from the damage caused by
\nthe floods on the public facilities, including road and water
\ngates, had reached Rp 85 billion (US$8.25 million).<\/p>\n
Some parties, however, have been confused by the plan as under
\nexisting regulations the right to issue permits for housing
\ndevelopment lies with the regional administrations not the
\ncentral government.<\/p>\n
Soenarno said the government may issue a presidential decree
\nstipulating the ban.<\/p>\n
Soenarno noted that the temporary ban on housing development
\ndid not mean that the government was pointing the finger at
\nproperty developers for the recent flood.<\/p>\n
\"Our action isn't aimed at blaming one party ... in fact many
\nparties are responsible for triggering the flood,\" Soenarno said.<\/p>\n
Soenarno noted, however, that during the ban, the government
\nwould evaluate the operation of all housing developers in the
\nGreater Jakarta area to find out whether or not they have
\nviolated rulings.<\/p>\n
\"And it's important that they stop building any houses while
\nwe evaluate them,\" he said.<\/p>\n
Should it be proven that they have violated any rulings, the
\ngovernment would first ask them to redesign their housing complex
\nplan, the minister said, but he failed to specify any sanctions
\nto be imposed on uncooperative developers.<\/p>\n
He said one of the housing projects being evaluated by the
\ngovernment was the Pantai Indah Kapuk golf course in North
\nJakarta which was built on a coastal mangrove swamp.<\/p>\n
Soenarno said the government would publish the results of its
\nevaluation next week.<\/p>\n
In the long term, he said, the government would take several
\nactions to cope with the flood problem including repairing the
\nwater gate in Manggarai, increasing the capacity of the water
\ngate in the West Flood Canal and building new water gates.<\/p>\n
Meanwhile, the Indonesian Real Estate Association vice
\nchairman Lukman Purnomosidi raised objections to the plan, saying
\nthe current housing development in Jakarta had been licensed by
\nthe Jakarta administration.<\/p>\n
\"We posses the legal basis to build the houses ... it can't be
\njust canceled,\" he said.<\/p>\n
He said the ban threatened REI's plan to develop about 90,000
\nhouses in the Greater Jakarta this year -- projects which will
\nabsorb a total of 900,000 workers and involve Rp 3 trillion in
\ninvestment.<\/p>\n
However, he said, the association would support the
\ngovernment's plan to evaluate all housing developers in order to
\nidentify and punish delinquent developers.<\/p>\n
He called on the government not only to blame housing
\ndevelopers for the recent floods but also to seek a broad
\nsolution involving various parties.<\/p>\n
\"This flood is not only caused by our members ... there are
\nstill many other aspects that must be seen,\" he said.<\/p>\n
REI has 300 active members in the Greater Jakarta area and a
\ntotal 2,000 members nationwide.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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