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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