Govt will not issue permits to delinquent developers<\/p>\n
JAKARTA (JP): The government will use permits to make sure
\nthat luxury house developers carry out their obligation to
\nconstruct low-cost housing, State Minister of Public Housing
\nAkbar Tandjung said here yesterday.<\/p>\n
\"If the developers neglect their obligation to build low-cost
\npublic housing, local administrations will not issue the permits
\nneeded for their operations,\" Akbar said in a hearing with the
\nHouse of Representative's Commission V which deals with housing
\nissues.<\/p>\n
He added that among the permits issued by local
\nadministrations are location permits, site-plan permits and
\nbuilding permits.<\/p>\n
Under a joint decree signed by the ministers of public
\nhousing, home affairs and public works, private developers should
\napply a 1:3:6 housing scheme, which requires them to build six
\nlow-cost houses and three medium-cost ones for each luxury house
\nbuilt.<\/p>\n
\"The government will impose firm sanctions against developers
\nrefusing to construct low-cost houses according to the housing
\nruling,\" Akbar said.<\/p>\n
The chairman of the Indonesian Real Estate Association,
\nEnggartiasto Lukita, said that he supports the government's
\nhousing policy.<\/p>\n
\"Developers support the government's policy promoting the
\ndevelopment of low-cost houses,\" he said.<\/p>\n
However, commission member Ali Marwan questioned the integrity
\nof big developers vis a vis their fulfillment of the government's
\nruling on the building low-cost houses.<\/p>\n
Akbar acknowledged that some big developers have not fully met
\nthe requirements.<\/p>\n
\"In Bandung, for example, there is a developer which felt it
\nhad built enough low-cost houses after giving a subsidy of Rp 1.4
\nmillion (US$625) to the local administration for each luxury
\nhouse it built,\" Akbar said.<\/p>\n
By imposing the ruling, the government expects that during the
\nsixth Five Year Development Plan (Repelita VI) period, which will
\nend in 1999, at least 500,000 low-cost houses will be built.<\/p>\n
During the first year of the Repelita VI period, the state-
\nowned developer Perum Perumnas built 12,120 low-cost houses and
\nprivate developers 68,177 other units, while cooperatives failed
\nto build any houses. Repelita VI requires the three institutions
\nto build a total of 93,000 houses in 1994-95.<\/p>\n
Minister Akbar said that the cooperatives' failure to
\nconstruct low-cost houses was caused by, among other things, the
\nhigh prices of land and increasing construction costs. (31)<\/p>",
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"sponsor": "Okusi Associates",
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