Indonesian Political, Business & Finance News

Bekasi receives over Rp 1.1b from builders

Bekasi receives over Rp 1.1b from builders

BEKASI (JP): The Bekasi administration has collected more than Rp 1.1 billion from developers, who must pay Rp 147,000 for each house they build.

The head of the administration office of the Bekasi Regency, Hidayat, announced on Thursday that the levies are legal because developers are obligated to build social facilities like schools, places of worship and playgrounds.

Hidayat did not explain if the developers had neglected to build the facilities.

He said the money collected from the developers would be used to build new schools.

There are now 54 developers building simple and luxury houses in Bekasi. "They all paid the fees when applying for permits. Developers who build 'very simple' houses are exempted from the levies," Hidayat said.

Simple houses measure 36 square meters to 45 square meters, while very simple houses are smaller than 21 square meters.

Bekasi Regent Moch. Djamhari recently promised that the money collected would be used to construct new elementary schools, especially for the villages near the new housing complexes.

Neither Djamhari nor Hidayat could say when a school will be constructed. They did not say if a damaged school building had been repaired with the money. Many elementary schools in Bekasi are in very poor condition.

The developers see the imposition of levies as a burden. "As businessmen we are seeking profit. The more levies imposed on us the more expensive the houses will be," a developer, who asked for anonymity, said yesterday.

Developers say they are overburdened with levies. "To build 2,000 houses in Bekasi a developer must give the administration Rp 294 million in levies." The developers did not explain exactly what kind of fees they paid the administration. (12/sur)

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