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)