Govt to simplify licensing procedure in housing sector

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)