Developers will be required to speed up house construction
Developers will be required to speed up house construction
JAKARTA (JP): The government will require real estate
developers to accelerate the construction of houses to meet
increasing demand, State Minister of Public Housing Akbar
Tandjung said here yesterday.
"Developers, under a new ruling currently being prepared by
the government, will be required to finish the construction of
houses within five years of receiving building licenses," he told
Commission V of the House of Representatives (DPR) in a hearing.
Akbar said the lack of regulations requiring developers to
accelerate the construction of houses has given them leeway to
delay their projects.
During the recently completed Fifth Five-Year Development Plan
(Repelita V) period, the government originally set a target of
450,000 new houses to be constructed by developers. However, even
though the target was reduced to 350,000 houses, only 321,770
units were constructed between April 1989 and March 1994.
Of the new houses, 86,104 units were constructed by the state-
owned Perum Perumnas, and the rest by private developers.
Akbar blamed high interest rates for the delays in housing
construction during the last five years, besides the lack of
regulations on the acceleration of housing construction.
The minister said construction acceleration is necessary
because developers are expected to construct no less than 500,000
houses during the current Repelita VI period.
Procedures
Akbar said that to support the acceleration of housing
construction, the government will simplify procedures for the
issuance of licenses needed for housing projects.
Members of the commission, which deals with transportation,
public works, tourism, post, telecommunications and public
housing, want the government to set a deadline of five years for
developers to complete the construction of houses after they
receive building permits.
"I suggest that developers complete housing projects within
five years once building permits are obtained." Marsinggih
Marnadi, a legislator from the Indonesian Democratic party (PDI)
said.
Marsinggih said a long delay in the construction of housing
complexes will encourage developers to begin speculating on the
land, which would result in an increase in land prices.
Akbar, when asked, declined to say whether the new regulation
will impose sanctions on developers failing to meet the housing
construction deadlines.
Marsinggih said the government should revoke the licenses of
developers failing to meet the deadlines.(02)