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)