Developers encouraged to act responsibly
JAKARTA (JP): Governor Sutiyoso insisted yesterday that city developers act responsibly and build low-cost apartments on the land they appropriate.
"Out of 148 developers, only nine have fulfilled their obligations by building low-cost apartments and seven others paid cash to the municipality instead of building the apartments," Sutiyoso said at a city branch meeting of the Indonesian Real Estate Association (REI) at Mulia Senayan Hotel.
Based on Gubernatorial Decree No.540/1990, developers who are awarded permits to annex more than 5,000 square meters of land are obliged to set aside 20 percent of their project for the construction of low-cost apartments.
"Building low-cost apartments represents the municipality's primary focus," he said.
Yan Mogi, the head of REI's city branch, told The Jakarta Post that there was a misunderstanding between the municipality and developers regarding the implementation of the decree.
"We admit that the association has not given its full support to this matter. Hopefully, after this meeting, it will be settled and we can continue building low-cost apartments."
Last September, the municipality rejected a demand from developers for a reduction -- from 20 percent to 5 percent -- in the amount of land to be set aside for cheap apartments.
Deputy Governor for Economic and Development TB.M. Rais said earlier it was difficult for the municipality to approve the developers' request because the city needs houses for its residents.
"The developers' participation in building low-cost apartments is badly needed to help provide decent housing for poor people living in slum areas and along the river banks," Rais said.
Edwin Kawilarang, the chairman of REI, said there should be a clearer explanation of the decree and the developers' obligation.
"Are we supposed to provide the land, the building or simply pay cash to the municipality? I think the association and the municipality have to reach a decision soon."
City Councilor Rusjdi Hamka said that the municipality must not compromise on this matter.
"If the developers fail to meet their obligation, the city can impose sanction against them, such as, revoking their permits."
Hamka said many developers had violated the rules and regulations.
"If the municipality keeps allowing them to break the rules when they develop projects, there is no use. No one obeys the rules anymore," he said.
City Councilor Fatommy Asaari shared his colleague's opinion.
"The city should not take a cash payment as compensation for 20 percent of an appropriated plot. The developers' obligation is to build apartments and provide low-cost housing. They cannot pay cash just because they are lazy to build apartments," he said.
Councilor Ali Imron Husein said the problem could be settled by changing the decree into a city bylaw.
"With a stronger law, the city can have a strong legal basis to enforce the rules and impose sanctions."
If the municipality issues a bylaw, developers can not so easily avoid their responsibilities, he added.
Sutiyoso urged developers yesterday to also pay attention to the regreening programs.
"To the developers who ignore regreening programs," he said. "I will not inaugurate their projects before they allocate larger plots for a green area," he said.
Sutiyoso said Jakarta's current image was a city filled with slum areas, thick dust and dry land. (07/05)