Low-cost houses built away from urban centers<\/p>\n
By Ridwan M. Sijabat<\/p>\n
TANGERANG, West Java (JP): The national government said
\nyesterday that the soaring prices of land and construction
\nmaterials means that in the future low-cost houses can only be
\nbuilt in areas well outside urban centers.<\/p>\n
\"The high price of land and construction materials is making
\nit impossible for the government to build cheap houses and
\napartments in big cities, such as Jakarta, Surabaya and Medan,\"
\nsaid State Minister of People's Housing Akbar Tanjung, whose
\nportfolio includes managing the government's low-cost housing
\nprogram.<\/p>\n
The low-cost housing program relies on the availability of
\ncheap land, he said. \"That's almost impossible in urban areas.\"<\/p>\n
While construction of low cost houses is mainly carried out by
\nprivate contractors, the government sets the prices, allowing the
\ndevelopers only a small profit margin.<\/p>\n
\"The non-availability of cheap land and the high price of
\nconstruction materials makes housing developers reluctant to
\nbuild simple housing and apartments in urban areas,\" the minister
\nsaid.<\/p>\n
Akbar was speaking after laying the first stone at a housing
\nproject for employees of the Ministry of Manpower in this city.<\/p>\n
Like many government agencies, the Ministry of Manpower has
\nbeen forced to look for sites for its employees' housing further
\naway from its Jakarta office. Civil servants are among the lowest
\npaid workers in Indonesia.<\/p>\n
The government's housing program was dealt another blow this
\nmonth when the government raised the reference prices of cement
\nby an average of 40 percent to reflect market shortages. The
\ngovernment followed up the move by raising the prices of its
\n\"modest houses\" by up to 14 percent.<\/p>\n
Akbar said that, given the way prices were soaring, low cost
\nhouses were only feasible in areas located 50 to 60 kilometers
\noutside urban centers. He said to make the houses affordable, the
\ngovernment could only pay Rp 5,000 per square meter for the land.<\/p>\n
He suggested that residents of housing complexes form
\ncooperatives to arrange transportation to and from work each day.<\/p>\n
The minister stressed, however, that the government was
\ncommitted to providing more houses for people with low incomes
\nand would assist them on the financial side.<\/p>\n
The advisory board for the housing of civil servants, chaired
\nby President Soeharto, has decided to increase by around 100
\npercent the subsidy offered to lower level civil servants buying
\ntheir own houses.<\/p>\n
\"For Grade 1 civil servants, the subsidy will be raised from
\nRp 600,000 to Rp 1.2 million and for Grade 2, it will be
\nincreased from Rp 750,000 to Rp 1.5 million,\" Akbar said.<\/p>\n
The funds are made available as interest-free loans for the
\ndown payment in purchasing houses.<\/p>\n
The program is financed through a compulsory savings scheme
\nimposed on civil servants. Contributions range from Rp 3,000 to
\nRp 7,000, depending on grade, which is automatically taken out of
\nworkers' monthly salary.<\/p>\n
Following the success of the home ownership scheme for civil
\nservants, Akbar disclosed that the government was now considering
\none for workers in the private sector.<\/p>\n
He suggested that private firms cooperate with housing
\ndevelopers and PT Astek, the state-owned workers insurance
\ncompany, in organizing such a scheme.<\/p>\n
He noted that some contractors had already built low cost
\nhouses for private sector workers close to industrial centers in
\nJakarta, Bogor, Tangerang and Bekasi.<\/p>\n
Asked about low-cost apartments, Akbar said that at this stage
\nthey were not feasible because they costed more to build than
\nhouses. \"Constructing 1,000 simple houses is more efficient than
\nbuilding 1,000 apartment units.\"<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/low-cost-houses-built-away-from-urban-centers-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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