House construction program exceeds government target<\/p>\n
JAKARTA (JP): Construction of new low-cost houses has exceeded
\nthe government's target for the last two years, State Minister
\nfor People's Housing Akbar Tanjung said yesterday.<\/p>\n
Akbar said the government target was to build 500,000 new
\nunits during the Sixth Five Year Plan which began in April 1994.<\/p>\n
While not giving precise figures of the number of houses built
\nin the last two years, Akbar said President Soeharto would
\nsimultaneously inaugurate 200,000 new low-cost houses and
\napartments in 180 urban centers across the country next Thursday.<\/p>\n
The ceremony will be held at a housing complex developed by
\nstate-owned Perum Perumnas in Cengkareng, West Jakarta.<\/p>\n
During the ceremony the President will also brief governors
\nand regents about coordination between provincial administrations
\nand the central government in providing affordable houses for
\nlow- and middle-income people.<\/p>\n
Construction of low-cost houses is subsidized by the
\ngovernment and home buyers also receive interest rate subsidies
\nfrom the state.<\/p>\n
To lower housing costs, President Soeharto approved a proposal
\nto use timber confiscated from illegal loggers, Akbar said.<\/p>\n
Akbar said his office, the Ministry of Forestry and the
\nAttorney General's Office would issue a joint decree regulating
\nthe use of seized timber for the purpose of the government's
\nhousing program.<\/p>\n
The minister said he planned to tighten the government's
\nsupervision of house sales following complaints from consumers
\nwho felt they were cheated by developers.<\/p>\n
He said the Agency for the Supervision of Housing Development
\nwhich he chairs, had been given the power to punish or prosecute
\ndevelopers who cheated their customers.<\/p>\n
He said the increasing demand for new houses had left
\nconsumers vulnerable to potential abuses from developers.<\/p>\n
There had been reports of home buyers giving downpayments on
\nhouses that were never built in the first place, he said. Some of
\nthe developers had been prosecuted, he added.<\/p>\n
Akbar urged the association of developers, Real Estate
\nIndonesia, and local administrations to strengthen supervision of
\ndevelopers.<\/p>\n
\"Before issuing permits, the authorities should thoroughly
\nexamine the competence of the developers,\" he said.<\/p>\n
He said the government also would enforce the rule requiring
\ndevelopers to build six low-cost houses for each luxury house and
\nevery three medium-priced houses they construct.<\/p>\n
The policy, known as the 1:3:6 concept, has been around for
\nmany years but has never been fully enforced. Developers continue
\nto build luxury houses which are easier to sell, while neglecting
\ntheir duty to build low-cost houses.<\/p>\n
Akbar said he planned to open a post office box to deal with
\ngrowing public complaints about the behavior of developers.<\/p>\n
\"This is aimed at improving service to the public,\" he said.
\n(rms)<\/p>",
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