Home buying plan for workers in the offing<\/p>\n
JAKARTA (JP): The government, working with a major local
\ncooperative, is currently working out a savings scheme which will
\nhelp private sector workers purchase their own homes.<\/p>\n
Agus Sudono, the chairman of the Workers' Central Cooperative
\n(Inkopkar), said the home ownership plan would be along the same
\nlines as the successful scheme already introduced for civil
\nservants and members of the Armed Forces.<\/p>\n
Inkopkar will set up an institute to manage the savings plan,
\nAgus told reporters after meeting with President Soeharto at the
\nMerdeka Palace.<\/p>\n
The cooperative has been active in constructing low-cost
\nhouses chiefly for its members and workers with low incomes.<\/p>\n
Soeharto during the meeting supported the idea of establishing
\nthe savings plan to help people buy their homes, Agus said,
\nadding that the government is currently making a draft of the
\nscheme.<\/p>\n
The compulsory savings scheme for civil servants was launched
\nlast year. Under the plan, members of the civil service who do
\nnot own their own homes can borrow a certain sum of money for a
\ndown payment on a house.<\/p>\n
Difficulties in raising a down payment has been cited as the
\nmain obstacle for people with low incomes to buy their own homes.<\/p>\n
Agus emphasized the need as well as the potential benefits in
\na similar scheme for private sector workers.<\/p>\n
"There are some nine million workers in the private sector in
\nIndonesia," he pointed out. If each one chips in Rp 1,000 a
\nmonth, then we're talking about Rp 9 billion in funds raised
\nevery month."<\/p>\n
To date Inkopkar has already built 40,600 low-cost houses, he
\nsaid. Half of these were sold to members of the cooperatives and
\nthe other half were made available to workers in the private and
\npublic sectors.<\/p>\n
The cooperative has been asked by the State Minister of
\nPeople's Housing to build between 60,000 and 100,000 low-cost
\nhouses during the current Sixth Five Year Plan which began on
\nApril 1, 1994.<\/p>\n
Agus said Inkopkar faces difficulties in raising funds
\nespecially to clear the land needed for such housing projects.<\/p>\n
"I asked for assistance from the President," he said, adding:
\n"This is in addition to the assistance we have already received
\nfrom the banking community."<\/p>\n
Soeharto during the meeting suggested that Inkopkar use
\ncheaper, second grade, mixed cement in building the houses in
\norder to keep costs low, Agus said.<\/p>\n
Besides costing less, mixed cement does not use much water and
\nit dries quicker, Soeharto pointed out during the meeting.<\/p>\n
Agus said the benefits of the cheaper cement has already been
\nproven during a test witnessed by officials of the Ministry of
\nPeople's Housing, the Indonesian Real Estate association,
\nInkopkar and the Association of Indonesian Cement Producers.<\/p>\n
He said however that the price of the mixed cement is still
\ntoo high at Rp 6,500 a sack.<\/p>\n
He suggested that the price be brought down to Rp 5,500 or Rp
\n6,000 at the most in order to encourage people to use it instead
\nof insisting on the first grade type which now sells at Rp 7,400
\na sack. (emb)<\/p>",
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"sponsor": "Okusi Associates",
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