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)