135 developers fail to build RSS

JAKARTA (JP): A total of 135 of 160 developers operating here failed to fulfill their obligation to build low-cost houses (RSS), an official said on Monday.

Muhaziem Mokhtar, head of the city housing agency, urged the city administration to impose sanctions against the 135 developers.

"The administration must take some action against these slack developers so they meet their obligation to build RSS as required by existing laws," Muhaziem told The Jakarta Post.

He said many of the 135 developers claimed their failure to build RSS was mainly due to the country's economic crisis and a shortage of government subsidies to build the low-cost houses.

"I know we're all still in this crisis, but why were the other 25 developers able to fulfill their obligation," Muhaziem asked.

He said the developers which had failed to build RSS were simply "weak and inefficient".

"If they're complaining about a shortage of skilled workers (to build RSS), there are tens of thousands of jobless in the city who desperately need work," Muhaziem said.

The city currently has 17,657 low-cost houses. The housing agency earlier targeted a total of 300,000 low-cost houses by 2007.

Muhaziem said the high demand for low-cost housing was in line with the growing population in the capital.

Separately, city councilor Ali Wongso supported Muhaziem's suggestion of penalizing recalcitrant developers, adding the punishment should be severe.

"But it's up to the administration to decide," he added.

According to Muhaziem, the developers are required -- based on Gubernatorial Decree No. 540/1990 -- to build six RSS for every three middle-cost houses and every luxury house they build.

"However, recent data from the agency shows these developers only built four low-cost houses for every 10 luxury and middle- cost houses they built," Muhaziem said.

He added that the city administration did not set aside funds for the development of RSS in the 1999/2000 fiscal year budget.

However, a total of Rp 55.30 billion from the budget will be allocated for the construction of low-cost apartments in the capital, including units to be built in Tebet, South Jakarta, and Petamburan, Central Jakarta. (ylt)