Minister wants developers' permits revoked

JAKARTA (JP): The State Minister of Public Housing Akbar Tanjung yesterday urged the Bogor, Tangerang and Bekasi (Botabek) administrations to revoke permits given to property developers who have not used the land.

Akbar said permits had been issued for over 92,000 hectare of land in the Botabek area, but barely 14,000 hectares had been used effectively.

"Permits must be given only to developers who will immediately build public housing on their properties," he said at a seminar held by Alumni Association of Islamic Students.

He said there were many cases of developers who sold their properties after acquiring permits from the city administration.

"This kind of practice must be stopped," he said.

The minister did not deny it was the government's decision to give the permits to developers. He said it was an effort to add more housing units in the regencies to cater for increasing demand.

However, as more working Jakartans turn to the Botabek areas for affordable housing, the minister said land provided for housing must be used immediately.

Akbar also urged developers to build houses affordable for all socio-economic levels.

He said so far there was no way to evaluate and control the effectiveness of the permits given to developers.

He said there was a Regional Housing Policy Supervision Agency (Badan Kebijaksanaan Pengendalian Pembangunan Perumahan dan Permukiman Daerah) which authorities sometimes failed to consult before issuing permits.

Authorities need to work hand in hand with the Agency to make sure developers have complied with all regulations, Akbar said.

"For example, before issuing a permit, authorities must make sure the developers are experienced in their field," he said.

Akbar said revocation measures could also be used to examine the number of housing units built on the properties, in line with a recent decree issued by State Minister of Agrarian Affairs and Head of the National Land Agency Soni Harsono.

The decree issued on Oct. 3 stopped giving new housing development permits in the Bogor, Tangerang and Bogor regencies, so the effectiveness of the permit system for could be evaluated.

Akbar said it was almost impossible to enforce the housing development ratio in Jakarta because of the city's more expensive land and complex spatial plans.

The 1:3:6 ratio rules there should be three houses of medium value and six simple houses to every luxurious house.

Therefore, "we are encouraging more developers to build cheaper apartments," he said, citing some apartments recently marketed for Rp 30 million per unit.

However, Akbar admitted the prices were still beyond people with low incomes. Such people have to seek distant locations like Parung Panjang, Maja, Lebak, and the suburbs of the Tangerang regency, using trains for transport. (04/28)