'Lifting land-use ban may cause speculation'<\/p>\n
JAKARTA (JP): Land speculation and black market trading of
\nland-use permits will become rampant following the withdrawal of
\nthe National Land Agency's ban on issuing land permits in Bogor,
\nTangerang and Bekasi, an observer said.<\/p>\n
Panangian Simanungkalit was responding to a circular issued by
\nthe agency, headed by State Minister of Agrarian Affairs Soni
\nHarsono, canceling the policy introduced last year.<\/p>\n
The agency announced in October that local authorities could
\nnot issue land permits until permits issued to develop 92,298
\nhectares had been evaluated. Only 13,276 hectares out of the
\n92,298 had been developed.<\/p>\n
\"The announcement of the policy discouraged speculators,\"
\nPanangian said yesterday.<\/p>\n
The halt on permits, Panangian said, \"was a strategic start to
\ncontrol land prices, although it was somewhat late\".<\/p>\n
The agency withdraw the policy on Feb. 18 after an evaluation
\non land-use permits.<\/p>\n
\"The withdrawal reflects inconsistency in public policy, and
\ndevelopers with small capital will have more difficulty in access
\nto land,\" Panangian said<\/p>\n
This was because land prices would soar again, and so would
\nthe illegal, but common, trading of land-use permits, the head of
\nthe Indonesian Study Center on Property said.<\/p>\n
\"The black market of land-use permits is no secret, and they
\nare expensive because of the various levies attached to them,\"
\nPanangian said.<\/p>\n
Land for low-cost housing will become even more scarce, he
\nsaid, while there would be even more idle land.<\/p>\n
\"There is no way small developers can buy enough land for low-
\ncost housing needs up to 33 years,\" he said.<\/p>\n
The inconsistency further shows a lack of integrated urban
\npolicy by housing, land and banking authorities.<\/p>\n
\"It still shows sectoral egoism,\" he remarked.<\/p>\n
A source at the agency confirmed yesterday that land use
\npermits could be reissued to developers on several conditions.
\nThese include permits for those appropriating land of not more
\nthan 200 hectares and those who agree to develop plots within 10
\nyears.<\/p>\n
Former chairman of the Indonesian Developers Association
\nMohamad S. Hidayat said the agency should halt permits for town-
\nscale development to enable control of land-use permits.<\/p>\n
But Panangian said what was more important was law enforcement
\non developers to prevent more instances of idle land.<\/p>\n
\"The government should immediately allocate idle land to new
\ndevelopers,\" Panangian said.<\/p>\n
He added there should be strict enforcement of the regulation
\nfor developers to build six cheap homes to every three middle-
\nscale homes and one luxury home.<\/p>\n
Land for housing is considered enough until 2018.<\/p>\n
Shortly after the instruction to stop land permits was
\nannounced, Soni agreed to the Indonesian Developers Association's
\nrequest that developers building cheap housing would still be
\nissued permits. (anr)<\/p>",
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