Govt promotes low-cost apartments

SURABAYA: Minister of Resettlement and Regional Infrastructure Soenarno called on developers on Tuesday to build more low-cost apartments for the poor.

In his address to participants of East Java's Real Estate Developers Association (REI) congress, Soenarno said the time was ripe for the nation to start living in apartments due to the limited supply of land and lack of order in land administration.

"We hope REI will adopt an appropriate approach to promote the construction of apartments for people in the middle- and lower- income categories," Soenarno said, adding that the demand for new houses was on the rise.

He stressed that 40 million poor people remained in need of housing.

In this fiscal year, the government has allocated Rp 256 billion as a subsidy for the development of 130,000 dwellings suitable for people in the lower-income bracket.

Soenarno said 11 banks had already pledged their commitment to participate in the project, -- Antara