Govt to increase subsidies for low-cost housing<\/p>\n
JAKARTA (JP): The government is expanding its loan subsidy for
\nthe purchases of low-cost houses to cover \"modest\" houses of 36
\nsquare meters, State Minister of Public Housing Akbar Tandjung
\nsaid yesterday.<\/p>\n
Akbar told journalists after meeting with President Soeharto
\nhere yesterday that the government, through appointed banks, will
\nprovide credits with annual interest rates of 14 percent for the
\npurchases of 36 square-meter houses.<\/p>\n
Current domestic lending rates range from 18 to 22 percent per
\nannum.<\/p>\n
\"Now, people wishing to buy houses of 36 square meters can
\nalso enjoy the government's support in the form of low interest
\nloans,\" Akbar said.<\/p>\n
The office of the state minister of public housing divides
\nlow-cost houses in terms of quality into \"modest\" and \"very
\nmodest\" categories.<\/p>\n
The government has been subsidizing the sales of low-cost
\nhouses by providing loans with low interest rates: 8.5 percent
\nfor \"very modest\" houses of 21, 27 and 36 square meters and 11
\npercent for \"modest\" houses of 18 and 21 square meters.<\/p>\n
Modest houses of 36 square meters were previously not eligible
\nfor government subsidies. Credits extended to customers to
\npurchase such houses were priced at the going market rates.<\/p>\n
Developers<\/p>\n
Akbar yesterday made another plea to housing developers to
\nheed the government's ruling which requires them to build low-
\ncost houses.<\/p>\n
Under a joint decree signed by the ministers of public
\nhousing, home affairs and public works, developers are required
\nto apply a 1:3:6 housing scheme, which obliges them to build six
\nlow-cost houses and three medium-cost ones for each luxury house
\nthey build.<\/p>\n
\"Large developers, like Bumi Serpong Damai, might need to set
\nup cross subsidies (from luxury houses to modest houses). And the
\ngovernment will continue to monitor them,\" Akbar said.<\/p>\n
Akbar also expressed his concern yesterday over the increase
\nin sharp practices by errant developers and those who market
\nfictitious houses. To prevent further losses, Akbar asked those
\nwho feel cheated by developers to send complaints and tip-offs to
\npost office box 5002.<\/p>\n
PO Box 5002 accepts public complaints on housing problems and
\nalso questions as well as information about housing matters from
\nthe public.<\/p>\n
Most complaints in the past had been addressed to the
\nAssociation of Indonesian Real Estate Developers.<\/p>\n
Akbar said his office had received 42 complaints from the
\npublic since the opening of PO Box 5002 early this month. Of the
\n42 complaints, 30 contain complaints on errant developers.<\/p>\n
\"We will soon form a special team which will look at what we
\nget from the public. The team will consist of officials from the
\noffice of the minister of public housing and executives of the
\nreal estate developers' association,\" Akbar said. (rid)<\/p>",
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"sponsor": "Okusi Associates",
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