561,000 cheap homes in 5 years

561,000 cheap homes in 5 years

JAKARTA (JP): Developers have pledged to construct 561,000
low-cost houses and apartments during the life of the current
sixth Five Year Development Plan (Repelita VI), State Minister
for People's Housing Akbar Tandjung said yesterday.

"We will monitor the implementation of their proposal -- which
is 12.2 percent higher than the government's target of 500,000
dwellings," he said after meeting with President Soeharto at the
Merdeka Palace.

In the Repelita V period, which ended in March 1994, the
government lowered its target for the construction of low-cost
housing from 500,000 to 450,000 residences but, despite the
revision, the number of dwellings constructed was far lower than
the target.

Akbar said the President wants developers to keep their
promises and would like them to give greater attention to the
construction of low-cost housing, particularly in urban areas.

More low-cost apartments, for example, are badly needed in
urban areas, the minister said.

To promote the construction of low-cost houses, President
Soeharto is expected to mark the start of the construction of new
low-cost housing projects in various parts of the country in a
ceremony in August.

Akbar said the date of the ceremony had yet to be set.

The government is trying to increase the supply of low-cost
houses -- up to 70 square meters in size -- by requiring
developers to construct at least six such houses and two medium-
sized ones for every luxury house they build. Developers are also
required to provide subsidized loans for purchasers of low-cost
houses.(riz)