Hight-rise housing drive faces funding hurdles

JAKARTA (JP): The city administration's determination to promote the development of high-rise housing is facing various problems, ranging from low personal incomes to escalating land prices, an official said yesterday.

Thamrin Djamain, president of the city-owned PT Pembangunan Sarana Jaya, said that most people living in slum areas cannot even afford the low-cost apartments that make up the highrise buildings.

"Because of the inability of these people to buy the facilities, the administration tends to lease the low-cost apartments to them," he said.

Speaking at the opening of a two-day national workshop on housing management, Thamrin said that the limited availability of funds has forced the city administration to invite private companies to enter the housing development program.

The workshop, which was opened by Governor Surjadi Soedirdja, was attended by 194 government officials, including 97 mayors, 34 regents and 63 chairmen of the regional agencies for development planning.

The demand for low-cost housing in Jakarta is estimated at 32,250 units per annum, middle class housing at 19,350 and the 12,900 units at the high end, he said.

The number of low-cost apartment units built by the city administration reached 8,734 units in the period between 1987 and 1994, 2,687 units from 1994 to 1995 and another 27,568 units will be built between 1996 and 2000, he said.

Thamrin said that the number of both low-cost apartment units and houses built by private companies reached 6,192 units in 1990 and 23,568 units in 1991.

He said that the sharp increase in the price of land in the city has been caused mainly by land brokers, the absence of a price control instrument and accelerated development.

Governor Surjadi said that the Jakarta administration's decision to promote high-rise housing is the result of limited land availability. (32)