Danayasa's low-cost housing development wins support

Danayasa's low-cost housing development wins support

JAKARTA (JP): Minister of Public Housing Akbar Tanjung has
warmly welcomed a decision of PT Danayasa Arthatama, which is
developing the Sudirman Central Business District (SCBD), to
build low-cost housing for low-income people.

"The development of low-cost housing by private companies will
reduce the heavy burden of the government in the provision of
low-cost housing," Tanjung said in a visit to the project on
Saturday.

The SCBD project, which is being built on a 45-hectare plot of
land, is located in Jakarta's golden triangle, which is bounded
by Jl. Jend. Sudirman on the West, Jl. HR Rasuna Said on the East
and Jl. Gatot Subroto on the South.

In line with the existing regulation, each developer of
high class projects is asked to build low-cost housing in
compensation for the issuance of its building permit.

Besides building shopping centers, office buildings, and
apartments in the SCBD project, PT Danayasa will also build
thousands of houses in Bogor, West Java.

The major buildings in the project will be the Jakarta Conrad
Hotel, Jakarta Stock Exchange Building, Jakarta Financial Tower,
Bank Artha Graha Tower, Jakarta Omni Hotel, Twin Office Towers,
Widya Graha Apartments and a hospital.

Stages

The SCBD project, to be built in stages until the year 2007,
at a cost of about Rp 7.6 trillion (US$3.37 billion), will be
incurred from both domestic and foreign investments.

The company has set aside about 100 hectares of land for the
construction of 7,000 low-cost houses, of which 1,000 are
scheduled to be inaugurated later this month.

PT Danayasa is a wholly owned subsidiary of a publicly listed
company on the Jakarta Stock Exchange, PT Jakarta International
Hotels and Development.

The finance director of the company, Arpin Wiradisastra, said
that the construction of most of the project's infrastructure has
been completed. "Water, electricity and telecommunications, as
well as the road networks are now available," he said, adding
that some of the buildings in the area are currently under
construction.

The president of PT Danayasa, Nasroel Chas, said that his
company is facing a number of legal problems due to the absence
of regulations regarding the use of underground rooms, private
rooms used for public activities, estate management, property
management, foreigners' opportunity to own land/apartments and
parking.

Nasroel underlined the importance of the regulations because
owners of strata titles want to know their rights and
obligations, whether they can appoint professional corporation to
manage them or not.

"It has happened because most of the management corporations
here do not have a license, as in other countries that already
have strata titles," Nasroel said. (31)