Builders asked to build more low-cost houses

Builders asked to build more low-cost houses

JAKARTA (JP): Vice President Try Sutrisno called on developers
yesterday to help close economic welfare gaps by building more
low-cost houses.

Speaking at the Indonesian Developers Association's 8th
congress, Try pointed out that developers should implement the
so-called 1:3:6 policy, which requires developers to construct
six low-cost houses and three medium houses for every luxury
house built.

At the four-day meeting attended by representatives from 27
provinces, he noted that during the Sixth Five-Year Development
Plan period (1994-1999) the government has targeted the
construction of at least 500,000 low and medium-cost houses.

So far, 241,002 units have been built, including 166,022 units
built by association members.

State Minister of Public Housing Akbar Tandjung warned: "If we
fail to address the issue then it could generate a bigger
political problem."

Developers, he said, should find a way to reduce their selling
prices without compromising on quality.

In a recent hearing with Commission V of the House of
Representatives, the minister pointed out that few developers
abide by the 1:3:6 policy.

At yesterday's meeting, a number of developers admitted to
their wrongdoing, saying that many problems contributed to their
negligence.

A developer from Lampung province said that arduous
bureaucratic procedures and discrimination in the issuance of
licenses, for example, have hampered the development of low-cost
houses.

He cited the added financial burden of providing such public
facilities as electricity and roads as another example.

"Developers should not be slapped with the higher costs of
providing the facilities," he said.

He called on the government to review the bureaucratic
procedures that make it expensive to build low-cost houses.

"The President himself initiated the 1:3:6 program in order to
close the economic gap, but his call has not yet been supported
by accommodating procedures in the regions," he stated.

"All regulations and procedures concerning the development of
low-cost houses should be streamlined," he said.

President Soeharto said while dedicating housing facilities
last month that if a developer refused to construct low-cost
houses the government would confiscate its luxury houses and sell
them to finance the development of cheap houses.

Besides Akbar, yesterday's meeting also featured State
Minister for Development Planning Ginandjar Kartasasmita, State
Minister for Agrarian Affairs Soni Harsono and Minister of Public
Works Radinal Moochtar as speakers.(13)