Housing price

Housing price

It was shocked to read in the newspaper of Dec. 5, 1995, that there are now 189 apartment blocks in Indonesia (mostly in Jakarta) built in the past two years, whereas the same number of apartments were built in Singapore over a period of 30 years. This simple fact is indeed shocking because I believe it will have the following consequences:

* Oversupply of apartments.

* High potential for bad credits (there are now Rp 43 trillion in property business credits).

* Disproportionately high bank interest rates.

* Soaring apartment/house prices.

* An over-heating economy with possible high inflation.

* Unfortunate consumers/buyers.

These quiet facts raise another question as to whether there is really a master plan in the development of the Indonesian economy. In my opinion the ultimate goal in developing this country is to bring about greater prosperity for the Indonesian people. But in this particular case it is the businessmen who gain most, because they build the apartments, not with their own money, but with the funds collected from the "buyers-to-be" and the banks. The banks protect themselves by imposing high interest rates on their debtors.

I hope the government will do something to prevent people from being exploited.

H.W. PIENANDORO

Bogor, West Java