Govt vows to ensure credit for low cost houses

Govt vows to ensure credit for low cost houses

JAKARTA (JP): The government yesterday gave assurances that
bank credits for the construction of low cost houses will
continue to flow next year despite threats of a possible credit
crunch in the property sector.

State Minister of Public Housing Akbar Tandjung told reporters
yesterday that the government has requested all the banks to give
priority to financing low and medium-cost houses.

"There should be no difficulties in getting loans for the
construction of low to medium-cost houses in the coming year,"
Akbar said during a media briefing to review the outgoing 1995.

He predicted continued strong demand for low and medium cost
houses in 1996.

Akbar however could not give similar assurances for the upper
end of the property market, noting that the recent rush to build
luxury apartments and houses may have brought the market to a
saturation point.

Many observers have also warned that Jakarta is facing a glut
in luxury apartments and houses when dozens of new projects are
completed in the next few years.

Akbar said many banks are likely to tighten their credits for
the construction of luxury property.

"It depends completely on the banks, whether they are willing
to finance the apartments, condominiums or luxury houses
projects. Before making their investments in certain projects,
they have to consider the risks," he said.

The minister yesterday also promised to tighten the
government's control over the sales of houses and apartments in
view of the growing complaint by property buyers about developers
failing to deliver what they promised.

Lured by aggressive advertising, many people have been duped
into buying property that did not exist nor will exist. There
were also complaints about houses that were not built in
accordance to the terms agreed at the time developers signed the
contract.

"Next year, the government will impose stricter controls on
developers, to make sure that they don't cheat consumers and take
advantage of them," Akbar said.

"I am optimistic that the number of cases will decrease next
year," he said, referring to the 132 cases this year that were
dealt with by the Real Estate Indonesia (REI), the association of
housing developers.

Akbar said his office will open a post office box to deal with
public complaints on housing problems, on the first of January.

PO Box 5002 will also accept questions and information about
housing matters from the public.

"The public can ask anything about housing matters and they
can file complaints if they feel they have been cheated by
developers," Akbar said.

Most of the complaints in the past had been addressed to REI.

This year, Akbar's office received complaints about six
developers from consumers. The six in question are PT Badra
Putra, PT Griya Jaya, PT Griya Lestari, PT Kala Sutra, PT Mayang
Sempurna and PT Tiga Putro.

Yesterday's media conference was held at Akbar's office and
was attended by REI chairman Edwin Kawilarang Perum Perumnas
president, Srijono, and deputy chairman of state-owned Bank
Tabungan Negara, Pandamsih. (31)