135 developers fail to build RSS
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)