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)