Low-cost housing developers still allowed to operate<\/p>\n
JAKARTA (JP): Developers specializing in low cost housing are
\nto be exempted from an instruction ending permits to developers
\nin Bogor, Tangerang and Bekasi, chairman of the Association of
\nIndonesian Developers (REI) Edwin Kawilarang said.<\/p>\n
Edwin said Saturday this was an agreement reached between REI
\nand the head of the National Land Agency\/State Minister of
\nAgrarian Affairs, Soni Harsono, who had instructed REI offices in
\nBogor, Tangerang and Bekasi, not to issue new permits for
\ndevelopers in the area.<\/p>\n
Soni earlier said the policy had to be taken because the areas
\nwere considered to have adequate housing complexes.<\/p>\n
The Oct. 3 instruction told the Agency's regional office heads
\nto make an inventory and evaluation of all land permits issued.<\/p>\n
Soni had also said that many developers had not yet started
\ntheir projects even though they had the permits.<\/p>\n
"Out of 92,298 hectares for which permits have been issued,
\nonly 13,276 hectares have been developed," Soni once said.<\/p>\n
Reports said that the instruction had caused an outcry from
\ndevelopers, especially small ones, until Saturday when Jakarta
\nREI ended its second annual convention.<\/p>\n
Edwin developers specializing in low cost housing should be
\nable to continue their projects.<\/p>\n
Team<\/p>\n
He also told REI members the Association's central board and
\nthe Agency will soon set up a team to determine which developers
\ndeserve punishment for neglecting their land.<\/p>\n
Soni had earlier suggested land speculation may have led to
\nthe neglect of the plots, but Edwin said this was not easy to
\ndecide.<\/p>\n
However Edwin said clear evaluation criteria was needed.<\/p>\n
"The job of the team will be to set the criteria and then
\nevaluate the developers' work," Edwin said.<\/p>\n
The Jakarta branch has around 900 members mostly operating in
\nareas bordering West Java.<\/p>\n
The evaluation team should complete its job in two months,
\nsaid Edwin.<\/p>\n
Commenting on the exemption to developers of low cost housing,
\na REI city branch executive, Soejono, said the criteria of what
\nconstitutes low cost housing is not yet uniform.<\/p>\n
According to the Ministry of Public Works, this means housing
\nunder 200 square meters, while the government-set price of low
\ncost houses is Rp 4.8 million (US$2,037.35)<\/p>\n
"In Jakarta's surrounding areas, this would mean 21-square-
\nmeter-homes on a 60-square-meter-plot, where land is below Rp
\n10,000 per square meter," Soejono said.<\/p>\n
REI Jakarta's outgoing chairman, Nugroho Suksmanto, told the
\nconvention the board has not managed to come up with ways of
\nbuilding low cost homes which will not burden a developer too
\nmuch.<\/p>\n
REI has targeted 500,000 low cost homes to be built from 1994
\nto 1999, including 10,000 in Jakarta's surrounding areas.<\/p>\n
Because of soaring land prices the private sector has not
\nbuilt low cost homes in the city.<\/p>\n
Edwin urged the new board for the 1996-1999 period "to be more
\npro-active" in dealing with "problematic developers."<\/p>\n
"Many consumers could be saved," Edwin said, if the board
\nimmediately summoned a developer whose project was reported to
\ncause problems.<\/p>\n
Governor Surjadi Soedirdja officially closed the convention on
\nSaturday. (anr)<\/p>",
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