House developers face bankruptcy

Fri, 18 May 2001, 00:00 WIB | Source: JP

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)

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