Government backs down on housing ban
Government backs down on housing ban
The Jakarta Post, Jakarta
The government backed down on Monday from its initial plan to
temporarily halt new construction in greater Jakarta amid strong
opposition from various opposition groups, saying it would only
temporarily withhold new licenses for some housing projects.
Minister of Resettlement and Regional Infrastructure Soenarno,
who stole the headlines in various local papers last week with
his statement regarding the government's plan to temporarily ban
housing development in order to keep more green areas for flood
control, denied ever making such a statement.
"What I was saying was only that we would not grant any new
licenses to developers for six months. The developers are allowed
to continue their housing construction activities," he said at a
hearing with the House of Representatives's Commission IV for
transportation and infrastructure.
The hearing was focused on flood prevention after the recent
disaster in several parts of the country, including greater
Jakarta.
Many people believe unregulated housing development led to the
depletion of many catchment areas over the past several years
contributing to the flooding.
The hearing was also attended by executives of the Indonesian
Real Estate Association (REI), who repeatedly opposed the
government's earlier plan to ban housing development.
REI has said the suspension plan had threatened REI's plan to
develop about 90,000 houses in greater Jakarta this year which
will absorb some 900,000 workers and provide Rp 3 trillion
(US$294 million) in investment.
It also said the suspension plan had sparked confusion among
buyers and banks. Some buyers had decided to delay buying houses
and banks had become reluctant to lend.
Some developers planned to sue the government should the
latter press ahead with its suspension plan, he added.
Several local governments also voiced opposition against the
plan, saying that the suspension would only lead to increased
unemployment.
The mounting pressures, along with intensive lobbying by many
groups opposed to the plan, were believed to prompt the
government to backtrack from its initial stance.
Soenarno said that his ministry had asked the governors of
Jakarta, Banten and West Java to withhold new licenses on housing
projects.
He noted however it was a request rather than an instruction,
citing that the right to issue licenses for housing projects lies
with the local governments and not the central government.
"The governors have the authority to issue the licenses, and
also the power to impose sanctions on developers," he said.
During the next six months, the government plans to evaluate
all the existing housing projects in greater Jakarta, to
ascertain whether they follow the existing regulations.
The House officially supported the government's new position.
Sumaryoto of the Indonesian Democratic Party of Struggle (PDI-
Perjuangan), who also chairs the Commission, said it was
unjustifiable for the government to bar housing development if
the developers possessed licenses.
Had the government moved ahead with its plan to temporarily
ban housing projects, developers would face a lot of financial
burdens, he said.
REI chairman Yan Mogi also welcomed the government's latest
decision, saying it would bring back certainty to investors.
"We support the government's plan to evaluate all of our
members. But, should the government find any violations by our
members, our members should be given chances to clarify," he
said.
Separately, chairman of the Indonesian Environment Forum
(WALHI) Emmy Hafidz said she doubted the government's seriousness
in thoroughly solving the flood problems in Jakarta.
She added that, to prove its seriousness, the government
should stop construction in Puncak and order developers to build
small flats in the Cianjur and Bogor areas so that the areas are
able to absorb water efficiently.