Govt will not issue permits to delinquent developers
Govt will not issue permits to delinquent developers
JAKARTA (JP): The government will use permits to make sure
that luxury house developers carry out their obligation to
construct low-cost housing, State Minister of Public Housing
Akbar Tandjung said here yesterday.
"If the developers neglect their obligation to build low-cost
public housing, local administrations will not issue the permits
needed for their operations," Akbar said in a hearing with the
House of Representative's Commission V which deals with housing
issues.
He added that among the permits issued by local
administrations are location permits, site-plan permits and
building permits.
Under a joint decree signed by the ministers of public
housing, home affairs and public works, private developers should
apply a 1:3:6 housing scheme, which requires them to build six
low-cost houses and three medium-cost ones for each luxury house
built.
"The government will impose firm sanctions against developers
refusing to construct low-cost houses according to the housing
ruling," Akbar said.
The chairman of the Indonesian Real Estate Association,
Enggartiasto Lukita, said that he supports the government's
housing policy.
"Developers support the government's policy promoting the
development of low-cost houses," he said.
However, commission member Ali Marwan questioned the integrity
of big developers vis a vis their fulfillment of the government's
ruling on the building low-cost houses.
Akbar acknowledged that some big developers have not fully met
the requirements.
"In Bandung, for example, there is a developer which felt it
had built enough low-cost houses after giving a subsidy of Rp 1.4
million (US$625) to the local administration for each luxury
house it built," Akbar said.
By imposing the ruling, the government expects that during the
sixth Five Year Development Plan (Repelita VI) period, which will
end in 1999, at least 500,000 low-cost houses will be built.
During the first year of the Repelita VI period, the state-
owned developer Perum Perumnas built 12,120 low-cost houses and
private developers 68,177 other units, while cooperatives failed
to build any houses. Repelita VI requires the three institutions
to build a total of 93,000 houses in 1994-95.
Minister Akbar said that the cooperatives' failure to
construct low-cost houses was caused by, among other things, the
high prices of land and increasing construction costs. (31)