Govt to increase subsidies for low-cost housing
Govt to increase subsidies for low-cost housing
JAKARTA (JP): The government is expanding its loan subsidy for the purchases of low-cost houses to cover "modest" houses of 36 square meters, State Minister of Public Housing Akbar Tandjung said yesterday.
Akbar told journalists after meeting with President Soeharto here yesterday that the government, through appointed banks, will provide credits with annual interest rates of 14 percent for the purchases of 36 square-meter houses.
Current domestic lending rates range from 18 to 22 percent per annum.
"Now, people wishing to buy houses of 36 square meters can also enjoy the government's support in the form of low interest loans," Akbar said.
The office of the state minister of public housing divides low-cost houses in terms of quality into "modest" and "very modest" categories.
The government has been subsidizing the sales of low-cost houses by providing loans with low interest rates: 8.5 percent for "very modest" houses of 21, 27 and 36 square meters and 11 percent for "modest" houses of 18 and 21 square meters.
Modest houses of 36 square meters were previously not eligible for government subsidies. Credits extended to customers to purchase such houses were priced at the going market rates.
Developers
Akbar yesterday made another plea to housing developers to heed the government's ruling which requires them to build low- cost houses.
Under a joint decree signed by the ministers of public housing, home affairs and public works, developers are required to apply a 1:3:6 housing scheme, which obliges them to build six low-cost houses and three medium-cost ones for each luxury house they build.
"Large developers, like Bumi Serpong Damai, might need to set up cross subsidies (from luxury houses to modest houses). And the government will continue to monitor them," Akbar said.
Akbar also expressed his concern yesterday over the increase in sharp practices by errant developers and those who market fictitious houses. To prevent further losses, Akbar asked those who feel cheated by developers to send complaints and tip-offs to post office box 5002.
PO Box 5002 accepts public complaints on housing problems and also questions as well as information about housing matters from the public.
Most complaints in the past had been addressed to the Association of Indonesian Real Estate Developers.
Akbar said his office had received 42 complaints from the public since the opening of PO Box 5002 early this month. Of the 42 complaints, 30 contain complaints on errant developers.
"We will soon form a special team which will look at what we get from the public. The team will consist of officials from the office of the minister of public housing and executives of the real estate developers' association," Akbar said. (rid)