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)