City to build low-cost apartments

JAKARTA: The city administration plans to build low-cost apartments for residents who are currently living in slums along the Kali Angke river in North Jakarta, to provide them with a more humane place to live.

"We will provide them with a more humane settlement instead of evicting them out of the area," Governor Sutiyoso said during his visit on Wednesday.

"The city administration will build 3,000 homes, although there are less than that number currently residing on the river. We can use the remaining units for residents from other unauthorized areas," he was quoted by city-owned news portal www.beritajakarta.com as saying.

Separately, head of the City Housing Agency, Jaendar Sagala said that land acquisition was the major obstacle for the construction of more low-cost apartments as land owners often demand much higher prices than the administration's budget allocates for such purposes.

"This year we will acquire land in Marunda in North Jakarta; Rawa Bebek in East Jakarta and another plot in South Jakarta."

Sagala also admitted that most of the residents did not have the financial ability to buy the low-cost units.

"Those who have the ability usually sell their homes to other people and return to their original place in the slum area.

"That's why we will change the system. We will rent the units instead of selling them to residents," he added. -- JP