Legislators blast developers

Legislators blast developers

JAKARTA (JP): The House of Representatives expressed concern
yesterday that most major developers have failed to abide by a
ruling requiring them to build three medium-class and six low-
cost houses for each luxury house they construct.

Freddy Latumahina of the Group faction said in a hearing
involving House Commission V and State Minister of Public Housing
Akbar Tandjung here that the developers of the Lippo Cikarang
housing complex, for example, have not built low-cost houses
there even though a number of luxury houses have been
constructed.

Other House members voiced their fear that such shirking of
responsibilities had also happened at many other developments.

Minister Akbar affirmed that his office will continue to
pressure developers to build low-cost houses along with luxurious
houses.

He did not specify why the developers had not yet fulfilled
the requirement.

But analysts point out that the small profit margin in the
construction of modest houses is the main factor contributing to
developers' reluctance to build this type of house.

Both the minister and the House members agreed that the
housing issue could easily turn into a political problem if the
development of modest houses does not proceed as expected.

The 1:3:6 ratio requirement is also seen as an attempt to
narrow the widening gap between rich and poor, a problem many
analysts consider increasingly urgent.

The analysts voiced this view after a series of housing
problems in Jakarta and outside recently. Among them was the case
of a developer that absconded with investors' money.(13)