REI can punish erring members<\/p>\n
JAKARTA (JP): City administration has urged the Jakarta branch
\nof the Indonesian Real Estate Association (REI) to take firm
\naction against developers that have failed to fulfill their
\nobligations to build low-cost apartments.<\/p>\n
Deputy Governor for Economic and Development Affairs Tb. Rais
\nsaid yesterday that REI has the authority to help the city
\nadministration implement its program to provide low-cost houses
\nfor low-income people in the city.<\/p>\n
\"Therefore REI has also the authority to take stern action
\nagainst its delinquent members,\" Rais told reporters.<\/p>\n
He explained that the city administration needs full
\ncooperation and support from the association because it is
\nimpossible for the administration to implement the program alone.<\/p>\n
Rais said the association should not hesitate in withdrawing
\nthe memberships of developers that offer fictitious real estates
\nfor sale.\"This can also be applied to developers that have failed
\nto build low-cost apartments,\" he added.<\/p>\n
He said the city administration would continue asking
\ndevelopers to fulfill their obligations to build low-cost
\napartments in certain areas such as in Tebet, South Jakarta, and
\nBendungan Hilir, Central Jakarta.<\/p>\n
The city administration's housing program is being hindered by
\nthe reluctance of most private developers to abide by the
\n\"balanced-housing\" concept, with only four of the 66 developers
\nin the city having fulfilled their obligations to build low-cost
\nhousing complexes.<\/p>\n
Based on gubernatorial decree No. 540\/1990, the city's 66
\ndevelopers of luxury buildings are required to build six low-cost
\nhouses and three medium-cost houses for every luxury house they
\nbuild.<\/p>\n
Under the decree, the private developers are required to
\nreserve 20 percent of their commercial sites for low-cost
\napartments.<\/p>\n
However, up to now only four developers have fulfilled their
\nobligations by building a total of 988 low-cost apartments.<\/p>\n
The four developers are PT Danayasa Arthatama with 240
\napartments in Tambora, West Jakarta, PT Catur Swasakti Utama with
\n160 apartments in Penjaringan, West Jakarta, PT Kuningan Persada
\nwith 292 apartments in Tanah Tinggi and another 296 apartments in
\nBendungan Hilir, Central Jakarta.<\/p>\n
PT Mandara Permai is currently building 3,000 low-cost
\napartments in Pantai Indah Kapuk, West Jakarta. The project is
\nexpected to be completed by the end of 1997.<\/p>\n
Currently, PT Setdco Graha Mandara is still planning to build
\n288 low-cost apartments in Tebet, South Jakarta.<\/p>\n
Private developers have been asked to take part in the
\ndevelopment of low-cost apartments as the city administration can
\nmanage to build only 3,150 apartments per year, or 30 percent of
\nthe total demand. The total demand is projected to reach 10,500
\nper year. (yns)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rei-can-punish-erring-members-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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