Low-cost apartment project abandoned

TANGERANG (JP): The development of low-cost apartments for factory workers in the Jatiuwung industrial district here has come to a halt because of the prolonged economic crisis, an official said on Monday.

"The apartments were designed to provide adequate units for factory workers and other low-income people. Only 80 percent of the construction has been completed," Undang Suherman, chief of the Tangerang housing agency, said.

The State Housing Company (Perumnas), which is in charge of the apartment project, was scheduled to finish construction by 1997, he said.

Undang said that he reprimanded Perumnas for neglecting the construction of the apartments and expected an immediate response from the company.

Work on the Rp 8 billion project began in 1996.

According to an earlier agreement, Perumnas was to build two apartment blocks and the local administration would build a third.

The block built by the local administration has been completed and currently houses about 90 tenants, most of whom work at nearby factories.

Undang admitted that it was difficult to find tenants because a large number of factory workers had been laid off during the economic crisis.

He said that he had lowered the rent from Rp 90,000 to Rp 40,000 per month. (41/ivy)