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Minister wants developers' permits revoked

| Source: JP

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)

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