Low-cost apartment developers seek incentives<\/p>\n
JAKARTA (JP): Private developers urged the municipality
\nyesterday to provide more incentives in developing low-cost
\napartments.<\/p>\n
One of the developers, Soekardjo Hardjosoewirjo, said that
\nincentives were badly needed to help speed up low-cost apartment
\ndevelopment.<\/p>\n
Soekardjo, who is also chairman of the Indonesian Chamber of
\nCommerce and Industry (Kadin) city-chapter, said incentives
\ndevelopers wanted included a reduction of fees for processing
\nnecessary permits for buildings and land use, and for water and
\nelectricity facilities.<\/p>\n
\"We hope there will be fixed fees set for private developers
\ninterested in developing low-cost apartments,\" Soekardjo told
\nreporters after a meeting with Governor Surjadi Soedirdja.<\/p>\n
Soekardjo met the governor to report on a plan by Kadin's
\nJakarta office, the Indonesian Real Estate Association city-
\nbranch and the municipality to hold a seminar on the
\nopportunities and challenges in developing low-cost apartments on
\nJuly 23.<\/p>\n
Soekardjo said the seminar would present problems encountered
\nby developers in developing low-cost apartments and to help find
\nsolutions.<\/p>\n
Surjadi ordered officials last year to simplify permit
\nprocessing procedures, but the order did not cover specific fees
\nfor low-cost apartment development.<\/p>\n
Soekardjo said many developers were actually interested in
\nbuilding low-cost apartments.<\/p>\n
\"But more incentives are still needed because developing low-
\ncost apartments is different from constructing middle-class
\napartments, which have more promising market potential,\"
\nSoekardjo said.<\/p>\n
\"The governor himself said that all Jakartans, whether they
\nlike it or not, should live in apartments due to a land
\nshortage,\" Soekardjo said.<\/p>\n
He also said developers urged the government to reduce loan
\ninterest rates of between 20 percent and 22 percent.<\/p>\n
\"Interest rates are too high. Ideally, interest rates for low-
\ncost apartment developers should be set between 14 percent and 16
\npercent,\" Soekardjo said.<\/p>\n
The city's assistant secretary on economic and development
\naffairs, Prawoto S. Danoemihardjo, said recently that the city
\nwas boosting the development of low-cost apartments to help
\neliminate slum areas and provide adequate housing for the poor.<\/p>\n
Due to financial problems, however, the administration has
\nonly managed to build 3,150 low-cost apartments per year, far
\nlower than the annual demand of around 10,500 apartments.<\/p>\n
In an effort to meet demand, the administration issued
\ngubernatorial decree No. 540\/1990, which requires developers to
\nset aside 20 percent of commercial sites for low-cost apartments.<\/p>\n
Fadjraa Oemar, president of apartment-building company Permata
\nKebayoran, said that the city should standardize prices of low-
\ncost apartments.<\/p>\n
\"Existing standards are not clear,\" he said.<\/p>\n
Oemar said there should be a price range for low-cost
\napartments, just like government-set prices for low-cost houses.<\/p>\n
The price for a 21-square-meter house, for example, is set by
\nthe government at Rp 4.9 million (US$2,008) and Rp 6.9 million
\nfor a 36-square-meter house.<\/p>\n
Data from the city housing agency shows that each year, demand
\nfor housing in Jakarta reaches 70,000 homes.<\/p>\n
Due to a land shortage, housing officials say 30 percent -- or
\nabout 23,000 homes -- should be in the form of vertical housing.<\/p>\n
So far 50 percent of vertical housing is provided by private
\ndevelopers, but those built by developers are mostly made up of
\napartments for middle and upper-income groups.<\/p>\n
The city has so far built 12,356 low-cost apartments for slum
\narea residents. (ste)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/low-cost-apartment-developers-seek-incentives-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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