Govt to simplify licensing procedure in housing sector

JAKARTA (JP): In a bid to cut red tape and improve efficiency, the government plans to simplify licensing procedures for public housing development projects.

State Minister for Public Housing Akbar Tandjung said that housing developers would "very soon" be able to tend their applications for the necessary permits at one bureau.

"The policy aims to speed up the development of housing and resettlement sites," he said after consulting President Soeharto on the plan.

Developers are complaining that, under present regulations, it takes months to obtain a bundle of permits from numerous agencies and they have to spend a lot of grease money and carry out arduous bureaucratic procedures to do so.

After obtaining the principal permit from the mayor, developers have to go to the regency branch of the National Land Agency Office. After that they have to apply for a site plan permit before the mayoralty or regency bureaucrats are willing to consider issuing the building permit.

"President Soeharto agreed that all the necessary permits should be obtainable in one bureau at the regency or mayoralty level," Akbar said.

He added the government is also considering abolishing or minimizing levies for the building permit for modest and very modest houses for the low-income bracket, hoping that more poor families will be able to afford to buy property.

The ministry of home affairs has been consulted on the plan but Tandjung declined to say when it will be implemented.

A modest house is one less than 21 square meters with a living room, bedroom, kitchen and bathroom. It is designed to be re- developed by the owner.

Tandjung and Soeharto also discussed a saving scheme for private company employees who want to buy houses. The same scheme has already been introduced for civil servants and members of the Armed Forces.

The saving scheme for private companies' employees will be discussed at a workshop organized by the State Ministry of Public Housing tomorrow. (pan)