Govt to get tough on developers
Govt to get tough on developers
JAKARTA (JP): President Soeharto has ordered State Minister of
Public Housing Akbar Tandjung to step up efforts to reduce the
incidence of cheating on the part of housing developers.
Speaking to reporters after meeting with Soeharto at the
Merdeka Palace yesterday, Akbar said the President wanted
stricter controls on housing developers, to ensure that they
abided by the "balanced-housing" concept.
The concept, introduced in 1992, requires developers to build
six low-cost and three medium-cost houses for every luxury house
they build.
Ever since its introduction, however, reports have shown that
numerous developers have ignored obligation to build low-cost and
medium-cost houses, which offer low profit margins.
"The President has stipulated that there will be no room for
compensation. This means that developers cannot substitute the
construction of the low-cost and medium-cost houses for a certain
amount of money," he said.
He said the President had emphasized the need for low-cost
housing because there was currently a large demand for housing on
the part of people with low incomes.
"The National Housing Board and its regional offices across
the country will intensify control over this matter," Akbar
pledged.
The National Housing Board, which is responsible for policy-
making, problem-solving and supervision of housing development,
consists of government officials from various related offices.
The board, which has regional offices across the country, is
headed by the state minister of public housing.
Akbar said the President had also called for greater control
over developers that have been cheating customers into paying for
houses but then failing to meet their expectations or, even
worse, not building the houses at all.
Nine such "fictitious houses" have been reported so far.
Separately yesterday, Tini Hadad of the Indonesian Consumers
Protection Agency told reporters that buyers have been
complaining about fictitious houses offered by PT Cantilan Windu
Kencana, PT Miyagi, PT Tigaputra Inti and PT Jaya Graha in
Bekasi; PT Pramitra Antar Sejahtera and PT Sapta Utama Intercom
in Tangerang; and PT Manunggal Adisiwi and PT Bumiayu
Sakinahcitra in Bogor.
Meanwhile, PT Kalasutra Indah Sejahtera was also reported to
have cheated some 3,000 prospective buyers of low-cost and
medium-cost houses.
"The government, which has the right to issue building
licenses and to carry out monitoring activities, must take full
responsibility for these frauds," Tini said.
Akbar said yesterday that several cases have been handed over
by his office to the police.
"The government will step up control to prevent further fraud
from occurring. This will be done by, among others things,
monitoring the activities of developers after they have been
licensed," he said, adding that the monitoring would be conducted
by the housing body's regional offices.
Akbar said he issued a ruling last June on house transaction
procedures.
The regulation, he said, allows transactions to take place
only after a housing developer has obtained the licenses needed
to start construction.
"Only after the developers have obtained these licenses can
they enter into binding transactions with their customers, such
as through booking fees," he said.
"If the housing board finds out that developers which have not
obtained the complete set of licenses are collecting money from
customers, it will take legal action against the developers,"
Akbar said. (29/pwn)