Governor backs strengthening of decree

Governor backs strengthening of decree

JAKARTA (JP): Governor Surjadi Soedirdja welcomes the idea to
convert the gubernatorial decree on the building of apartments
into a provincial decree which is legally stronger.

Surjadi said yesterday that the idea which came from a city
councilor was good input. Such a degree would enable the
administration to pressure developers into respecting their
obligations.

Decree No. 540/1990 stipulates that developers of luxury
apartments are obliged to provide 20 percent of their commercial
sites for low-cost apartments.

The decree was made because the administration was able to
build only 3,150 apartments per year. The total demand is
projected to reach 10,500 apartments per annum.

Only four of the 66 developers building luxury apartments in
the city from 1991 to 1994 have abided by the gubernatorial
decree.

Based on that, chairman of Indonesian Democratic Party (PDI)
faction at the City Council Lukman Mokoginta recently suggested
converting the gubernatorial decree into a provincial decree,
which carries more weight with developers.

"It is a very good idea and we will think about it. But in the
mean time we will continue implementing the gubernatorial decree.
We will press the private developers to fulfill their obligation
to build low-cost apartments," Surjadi said.

Surjadi acknowledged he was dissatisfied with developers'
response to the gubernatorial decree. But he said he believed the
decree did work.

He said that the city administration avoided using stern
actions against "stubborn" developers.

Criticism

The city council has frequently criticized private developers
who fail to build low-cost apartments and has urged the
administration to issue a provincial decree on developers'
obligations which they expect will be respected.

The PDI and the United Development Party factions said that
the gubernatorial decree had no legal power to make developers
fulfill their obligation.

This was the reason why developers have been reluctant to
build low-cost apartments as required by the gubernatorial
decree.

The four developers who have built low-cost housing are PT
Danayasa Arthatama with 240 apartments in Tambora, West Jakarta,
PT Catur Swasakti Utama with 160 apartments in Penjaringan, West
Jakarta, PT Kuningan Persada with 292 apartments in Tanah Tinggi
and another 296 apartments in Bendungan Hilir, Central Jakarta.

The other company is PT Mandara Permai, which is constructing
3,000 low-cost apartments in Pantai Indah Kapuk, West Jakarta.
The project is expected to be completed by the end of 1997.

There have been a total of 7,163 low-cost apartments built
since 1985 in the city. They measure from 18 square meters to 54
square meters each.(yns)