House construction program exceeds government target
House construction program exceeds government target
JAKARTA (JP): Construction of new low-cost houses has exceeded the government's target for the last two years, State Minister for People's Housing Akbar Tanjung said yesterday.
Akbar said the government target was to build 500,000 new units during the Sixth Five Year Plan which began in April 1994.
While not giving precise figures of the number of houses built in the last two years, Akbar said President Soeharto would simultaneously inaugurate 200,000 new low-cost houses and apartments in 180 urban centers across the country next Thursday.
The ceremony will be held at a housing complex developed by state-owned Perum Perumnas in Cengkareng, West Jakarta.
During the ceremony the President will also brief governors and regents about coordination between provincial administrations and the central government in providing affordable houses for low- and middle-income people.
Construction of low-cost houses is subsidized by the government and home buyers also receive interest rate subsidies from the state.
To lower housing costs, President Soeharto approved a proposal to use timber confiscated from illegal loggers, Akbar said.
Akbar said his office, the Ministry of Forestry and the Attorney General's Office would issue a joint decree regulating the use of seized timber for the purpose of the government's housing program.
The minister said he planned to tighten the government's supervision of house sales following complaints from consumers who felt they were cheated by developers.
He said the Agency for the Supervision of Housing Development which he chairs, had been given the power to punish or prosecute developers who cheated their customers.
He said the increasing demand for new houses had left consumers vulnerable to potential abuses from developers.
There had been reports of home buyers giving downpayments on houses that were never built in the first place, he said. Some of the developers had been prosecuted, he added.
Akbar urged the association of developers, Real Estate Indonesia, and local administrations to strengthen supervision of developers.
"Before issuing permits, the authorities should thoroughly examine the competence of the developers," he said.
He said the government also would enforce the rule requiring developers to build six low-cost houses for each luxury house and every three medium-priced houses they construct.
The policy, known as the 1:3:6 concept, has been around for many years but has never been fully enforced. Developers continue to build luxury houses which are easier to sell, while neglecting their duty to build low-cost houses.
Akbar said he planned to open a post office box to deal with growing public complaints about the behavior of developers.
"This is aimed at improving service to the public," he said. (rms)