Many developers fail to construct low-cost housing
Many developers fail to construct low-cost housing
JAKARTA (JP): City Council members criticized private property
developers yesterday for failing to build low-cost apartments
according to schedule.
Many developers have failed to construct apartments for low-
income people, arguing that the governor has not provided the
needed land.
The councilors emphasized that the businessmen should have the
initiative to keep reminding the administration of its obligation
to provide the sites for the low-cost housing.
"Developers should not keep waiting for the city
administration to determine the location. Instead, they should
keep asking," said Soetarman AMD, Deputy Chairman of the
Council's Commission D in charge of public works.
"The commission urges the developers to be pro-active so that
they can build the badly needed low-cost apartments," Soetarman
told reporters.
Secretary of the Commission Bahriyoen Soetjipto supported
Soetarman's proposal, saying that development of more low-cost
apartments is one of the city's priorities.
Bigger role
Bahriyoen noted that private developers should play a bigger
role in the development of housing for the poor because the city
administration is unable to do it alone due to financial
constraints.
He suggested that builders should start work as soon as they
have the necessary permits.
He noted the case of PT Indokisar Jaya, a developer of
apartments, hotels and house/shops on Jl. Pecenongan, Central
Jakarta, as an example.
Under a 1990 gubernatorial decree, developers are required to
build a low-cost apartment when they build an upscale one. But PT
Indokisar Jaya has not yet built a low-cost one because it is
waiting for the city administration to determine the location it
is supposed to build on.
Action
"This kind of confusion would not have occurred if the
developer had not just waited (for the city administration to
determine the location)" Bahriyoen said.
PT Indokisar is facing punitive action by the city
administration because it has not begun the construction of the
apartments.
Bahriyoen said the construction of the luxury apartments has
been 60 percent completed and therefore it is time for the
developer to fulfill its obligation to build the low-cost
apartments.
Managing Director of PT Indokisar Alex Lingas told the city
council that it will discuss the matter with the city
administration as soon as possible.
Every year the city needs 70,000 housing facilities and, due
to land shortages, 30 percent of the demand should be fulfilled
by low-cost apartments and condominiums.
Fifty percent of the demand is fulfilled by private developers
who build luxurious housing for the middle and upper classes and
the rest should be fulfilled by the city administration.
The city administration plans to build housing for 3,150
families every year from the 1995/1996 fiscal until 2006.
Currently the city administration is constructing 40
apartments 21 square-meters in Jati Bunder, 152 in Karet Tengsin,
532 in Bendungan Hilir and 288 in Tebet.
From 1985 there has been a total of 7,163 low-cost apartments
of various types built in the city, from 18 square-meter
apartments to 54 square-meters. More than 1,200 apartments will
be constructed and ready for occupancy next year.(yns)