Yogie urges action against housing speculators<\/p>\n
JAKARTA (JP): Minister of Home Affairs Moch. Yogie S.M.
\nyesterday denounced the speculators who have been buying up
\nhouses, which, he said, drives up prices and deprives those in
\nneed of affordable housing.<\/p>\n
During a meeting with governors and regency chiefs to discuss
\nthe government's housing policy, Yogie urged local administrators
\nto take action against speculators.<\/p>\n
He noted that the sales of new houses have been booming in the
\nmajor cities of Indonesia.<\/p>\n
However, many of the houses have not been occupied since they
\nwere purchased for speculative purposes, he said, noting that the
\ntrend holds true for both luxury and low-cost houses.<\/p>\n
Many people are buying houses simply to rake in as much profit
\nas possible, he said.<\/p>\n
"The situation must not be tolerated," he said.<\/p>\n
The two-day meeting was scheduled to be closed yesterday by
\nVice-President Try Sutrisno.<\/p>\n
President Soeharto, during a ceremony to launch 240,000 low-
\ncost houses on Thursday, urged urban administrators to assist in
\nthe development of low cost houses and apartments.<\/p>\n
To overcome the problem of soaring land prices, he proposed
\nthat local governments build apartments and new housing
\nfacilities for the poor living in slum areas.<\/p>\n
Yogie and State Minister for National Development Planning
\nGinandjar Kartasasmita took turns yesterday hammering home the
\nmessage during the meeting with governors and regency chiefs.<\/p>\n
The two ministers underlined the need for local governments to
\ngive priority to details of site plans, which clearly mark land
\nareas designated for low cost housing.<\/p>\n
Most current spatial planning maps identify housing areas,
\nwithout indicating the areas for industrial sites.<\/p>\n
"The designation of land for low cost houses in spatial plans
\nmust be followed by the supervision of the permits issued by
\nlocal administrations," Ginandjar said.<\/p>\n
He added that the government plans to issue a regulation to
\nenforce the 1992 Law No. 24 on Spatial Planning.<\/p>\n
Yogie warned that failure to meet the government's target of
\nbuilding 500,000 units of low cost houses during the current
\nSixth Five Year Plan would discredit the government.<\/p>\n
Such failure, he said, could lead to endless political
\npolemics.<\/p>\n
The chairman of the Indonesian Real Estate Association,
\nEnggartiasto Lukita, welcomed the government's admission to
\ndesignate land low cost houses.<\/p>\n
With transparent spatial plans and strict supervision,
\n"speculators will not be interested in land marked for the poor,"
\nEnggartiasto told reporters yesterday.<\/p>\n
He proposed that the authorities also set standard prices for
\nsuch land.<\/p>\n
The lack of standardized land prices has allowed speculators
\nto take advantage of the situation as soon as the developers
\nforward their requests for building permits, he said.<\/p>\n
He revealed that the association's 2,000-plus members "are
\nforced to employ brokers for 90 percent of all land
\nappropriations", which, he said, causes more losses for both
\ndevelopers and land owners.<\/p>\n
"If we do not work with brokers, they (speculators) would buy
\nup all the land and claim to act on behalf of residents when they
\ndemand compensation."<\/p>\n
This then leads to land disputes and delays in construction
\nand further financial losses, Enggartiasto said.<\/p>\n
Speculation can also be avoided by a government-set price for
\nland based on after-tax prices, he said.<\/p>\n
Minister of Public Works Radinal Moochtar also addressed the
\nmeeting.<\/p>\n
He said the involvement of the private sector will be vital to
\nbuilding infrastructure and enabling the government to
\nconcentrate on services to the low income sector. (anr)<\/p>",
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