JAKARTA (JP): Minister of Public Housing Akbar Tandjung said

JAKARTA (JP): Minister of Public Housing Akbar Tandjung said
yesterday that the property business here is quite promising
since Jakarta residents prefer to buy houses in real estate
complexes rather than build houses of their own.

"In the long run, people won't bother to construct their own
houses, so they'll turn to real estate developments for
convenience," Akbar said at the opening of the Real Estate Expo
'94 at the Jakarta Hilton Convention Center.

As many as 91 housing and apartment developers, five banks and
25 companies specializing in building materials and interiors,
are taking part in the week-long exhibition.

The minister, however, noted that the majority of those who
need houses are people with low incomes. It means developers are
morally compelled to build more simple houses, which were
noticeable by their absence at the exhibition.

Akbar said most developers have not responded to the
government's call to build six modest houses for every one luxury
house and three medium houses they build.

"Most developers have not heeded the call, although REI
(Association of Indonesian Real Estate Developers) has urged them
to do so," Akbar said.

Enggartiasto Lukito, head of the association, admitted that
houses offered at the exhibition are mostly for the middle and
upper classes.

"Developers of low-cost houses are reluctant to joint this
expo due to financial constraints. Participating in this kind of
expo costs a lot of money. That's why we plan to help arrange a
similar expo especially for them," he said.

According to Enggartiasto, the main constraints to building
modest houses are the prohibitive prices of land and building
materials, as well as the ubiquitous red tape.

An attendant of the Taman Adiyasa housing stand said building
simple houses in the city is almost out of the question.

"Don't expect developers to build even a simple house in the
city. If you want to buy a low-cost house, you'd better choose to
live in Bekasi or Tangerang," he suggested.

Suwardi, a visitor, said most houses offered are out of his
price range. The lowest-priced house offered at the exhibition
sells for Rp 9 million (US$4,280).

"I'm still living in a rented house, but buying a home of my
very own is out of the question, and besides, it would be located
far away from my office," he lamented. (11)