Housing developer may lose permit

JAKARTA (JP): The city administration is threatening to revoke the development permit granted to PT Setdco Grahamandura to build a US$400 million condominium in Tebet, South Jakarta, unless the firm also builds low-cost flats for low-income people.

Head of the City Housing Office Ongky Sukasah said that the developer had so far failed to meet its obligation to build three blocks of low-cost apartments in Tebet Barat, also in South Jakarta.

"The developer has failed to meet the December deadline for the construction of the low-cost apartments and the related agencies are considering revoking the (company's) building permit," Ongky told reporters on Monday.

Ongky said that under a 1990 gubernatorial decree, developers are obliged to build low-cost apartments when they build upmarket condominiums. PT Setdco had agreed to build 288 units in Tebet Barat.

The 1990 decree is aimed at providing Jakarta's slum dwellers with better housing.

According to Ongky, the developer has built only the foundation of one of the low-cost unit buildings, while construction of the other two has not yet commenced.

Setdco officials were not available for comment yesterday.

PT Setdco Grahamandura is constructing a luxury 2,000 unit apartment complex on Jl. Casablanca with a total investment of US$400 million. The complex is to be known as Java House.

The company is a subsidiary of the Setdco Group, which is owned by tycoon Setiawan Djodi.

Java House is being built on a 9.5 hectare plot of land and will include a four-story shopping mall, a sports center, swimming pool and other recreational facilities.

The ground breaking ceremony for the associated low-cost apartment building was led by Governor Surjadi Soedirdja last year. At the same time, Surjadi announced three other low-cost apartment projects: in Bendungan Hilir, Karet Tengsin and Jati Bunder, all in Central Jakarta.

About 720 low-cost flats are to be built in Bendungan Hilir, 152 in Karet Tengsin and 40 in Jati Bunder. The total cost of the three projects is Rp 57 billion (US$26.13 million).

Last week, councilors criticized the city administration for not being tougher on developers who fail to honor their obligations to build low-cost apartments.

The councilors urged the city administration to take firm action against companies who failed to build cheaper flats as well as intensifying its supervision of the projects.(yns/32)