City to assist low-cost apartment dwellers

JAKARTA (JP): The municipality will help low-cost apartment residents to pay meet their monthly mortgage payments.

The head of the City's Housing Agency, Ongky Sukasah, said yesterday the agency had allocated Rp 96 million (US$40,083) to give financial assistance to needy residents in five low-cost apartment buildings in the city.

The city hopes the funds will help families start small businesses.

"The assistance is expected to improve residents' income, which in turn will enable them to pay installments," Ongky said at City Hall.

The people eligible for the scheme are those living in the Bidaracina apartments in East Jakarta, Benhil II and Tanah Tinggi apartments in Central Jakarta, Tambora apartment in West Jakarta and Tebet Barat apartments in South Jakarta.

Former slum dwellers are given priority of purchase of the apartments and pay 50 percent of the cost, or Rp 10 million to Rp 15 million. The rest is subsidized by the city.

Although many have sold their apartments, the city is sticking to its policy of resettling slum people in them.

Some of the original owners said they sold their apartments because they did not think they could meet the monthly installments and maintenance fees, and they expected a drop in income.

They had said it was hard to continue their jobs, such as selling vegetables or food, while living in high-rise homes.

The apartments are purchased in installments of Rp 90,000 to Rp 200,000 a month over a five to 20 year period.

Ongky had said earlier that eventually the slum residents would prefer living in apartments, and the city would help them.

He said yesterday the assistance plan came out of a course run by the agency for low-cost apartment residents last October.

The five-month entrepreneurship course for 359 participants, mostly women, included cooking, sewing and medical training.

He said the basic skills could help participants start their own businesses such as kindergartens or medical clinics.

Deputy Governor for Administrative Affairs, Idroes, who was present at the inauguration of the fund, said he hoped residents would use the aid to improve their earning capacity. The city was committed to the apartment project, but there were still cultural problems, he said.

He said the city's approach to social and financial assistance could help the residents meet their payments and improve their understanding of their rights and obligations as apartment dwellers.

Horista, a sewing course participant, thanked the municipality for the training. She said she hoped her new skills and the financial aid would enable her to pay the installments. (11)