Indonesian Political, Business & Finance News

Agency's rule aims to promote good developers: Akbar

| Source: JP

Agency's rule aims to promote good developers: Akbar

JAKARTA (JP): State Minister of Public Housing Akbar Tandjung
said he understands worries that a recent instruction on halting
the issuance of new permits issued by the National Land Agency
may hurt a number of developers.

The instruction dated Oct. 3 was directed to regional offices
of the agency in Bogor, Tangerang and Bekasi (Botabek) from the
chairman of the agency/State Minister of Agrarian Affairs Soni
Harsono.

"It is in the interest of the government to promote developers
with good managements," Akbar said as quoted by Antara on
Saturday.

"If a natural selection does happen, it is unavoidable," he
said Friday after opening a housing exhibition.

On Wednesday the chairman of the Association of Indonesian
Developers (REI), Edwin Kawilarang, called for guidelines on
possible permit revocations following the instruction.

Soni has instructed the regional agencies to make an inventory
of plots for which permits have been issued, including expired
permits.

Only 13,276 hectares of land have been developed from the
92,288 hectares for which permits have been issued, the
instruction said.

Land speculation is one of the concerns which prompted the
agency to issue the instruction.

Edwin admitted some developers sell their permits to others,
but insisted that developers many are reliable. He said problems
would occur in inventory-taking as evaluation lacks strong
criteria.

Developers feared the instruction would hurt those with only
10 to 20 hectares of land in Botabek, who would no longer acquire
permits after completing their projects in the next few years.

Akbar said one indication of poor management is the inability
to appropriate land and to keep up with their schedule.

But he said the government has already anticipated ways to
help small-scale developers.

One of them is to continue urging partnerships with large-
scale firms, such as conducted by the Citra Group, Akbar said.

Another way is the future transfer of revoked permits to
selected developers including small-scale ones.

Akbar said the government would also check into the existence
of enclaves in Jakarta and Botabek which could be used by small-
scale firms to set up simple, cheaper homes.

The ongoing exhibition at the Jakarta Convention Center, which
runs through Nov. 10, is organized by REI and PT Debindo Multi
Adhiswasti.

Free consultation services in the event participated in by 134
developers include those from the city's spatial planning agency.

The agency consults visitors on building permit procedures.
(anr)

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