Land prices keep going up

Land prices keep going up

JAKARTA (JP): The price of land on Jl. Thamrin and Jl. Kebon
Sirih in Central Jakarta reached a record Rp 12 million
(US$5,106) per square meter this year, the highest in the city.

This was an increase of Rp 2 million on 1996 prices, an
official said yesterday.

Head of the city revenue office Wahab Rachmatsjah said the
projection was the result of an annual review made by his office
to estimate income from property taxes in the area.

"This year, value of land in the city will range between Rp
14,000 to Rp 12 million per square meter," Wahab said.

Last year, the value of land ranged from Rp 64,000 to Rp 10
million, he said.

City revenues from property taxes in the 1996/1997 fiscal year
were expected to reach Rp 334.5 billion, up from Rp 284.4 billion
last fiscal year.

Up to Jan. 10, the city had collected Rp 241.3 billion, or
72.15 percent of property taxes.

The property tax is the accumulation of the value of taxable
property divided by 1,000.

A councilor from the Indonesian Democratic Party, Djenny
Suharso, said the city should socialize the new price of land
before using the prices as standards to collect property tax.

"Don't determine the amount of the property taxes based solely
only on the land's location, but also its function," Djenny said.

For instance, owners of houses in expensive areas should not
have to pay the same amount of tax as office owners in the same
area, he said.

Zakiruddin Djamin, member of Commission E for People's
Welfare, said those who could not pay the tax were able to ask
for a reduction.

"People who have retired but live in expensive areas such as
Menteng, Central Jakarta, should be able to ask for a tax
reduction," Zakiruddin said.

While Jl. Thamrin and Jl. Kebon Sirih topped the list of
locations, the lowest priced land cost Rp 14,000 per square meter
in the Pulau Kelapa and Pulau Untung Kelapa subdistricts, in the
Pulau Seribu Islands off the North Jakarta mayoralty.

The cheapest land in Central Jakarta was Rp 335,000 per square
meter, in the Petamburan, Pegangsaan, Kramat and Kemayoran
subdistricts.

In West Jakarta, the highest priced land was Rp 7.5 million
per square meter on Jl. Gadjah Mada and Jl. Hayam Wuruk, while
the lowest was Rp 64,000 per square meter in the Kamal
subdistrict.

In North Jakarta, the highest priced area was the Ancol
subdistrict, where land cost Rp 6 million per square meter.

In East Jakarta the most expensive plots were in the Cawang
and Bidara Cina subdistricts, at Rp 3.1 million per square meter,
while the lowest were in Ujung Menteng, Cakung Timur, Cakung
Barat and Rawa Rate subdistricts at Rp 128,000 per square meter.
(ste)