Fri, 18 May 2001

House developers face bankruptcy

MAKASSAR, South Sulawesi: Around 90 percent of house developers in South Sulawesi, who depend on housing credit from state-owned Bank Tabungan Negara (BTN), could go broke if the government goes ahead with plans to suspend subsidies to the banks in question.

Developers said that the policy, issued on May 8, will most noticeably affect the construction of simple and inexpensive houses.

The head of South Sulawesi's Indonesian Real Estate Association, Yusran Paris, said the policy is unfair for people from a low economic bracket.

"We urge the government to revise the policy if they want to see housing developments working," he said.

Yusran said that out of 5,000 houses to be sold this year, only 10 percent had been sold up until early May. (30)