Minister wants more low-cost housing in industrial zones

Ridwan Max Sidjabat, The Jakarta Post, Bekasi, West Java

Manpower and Transmigration Minister Jacob Nuwa Wea inaugurated over the weekend two blocks of affordable apartments for low- income workers in Jababeka industrial zone, Cikarang, Bekasi, West Java.

The four-story blocks were built by state-owned PT Jamsostek on a 7,400-square-meter site at a cost of Rp 12 billion (around US$1.5 million).

The complex has a clinic, library, mini-market and sports facilities. It has 245 rooms and could accommodate around 1,000 single workers, with rooms rented at Rp 110,000 to Rp 125,000 per month.

Nuwa Wea appreciated the low-cost apartments and called on Jamsostek to develop more in industrial zones in other provinces, adding that it would help the government's program to build one million affordable homes this year.

"Workers in urban areas are in dire need of such apartments due to their low income. Had PT Jamsostek not built the apartments, the workers would never be able to possess such environmentally friendly, low-cost housing," he said in a ceremony to inaugurate the new apartments.

Jamsostek president Achmad Junaidi said that Jamsostek had so far developed a number of low-cost apartment blocks in Batam, Riau province, and Makassar, South Sulawesi, besides the new ones at Cikarang.

"The apartments cost Rp 184 billion and could accommodate 32,264 workers," he said, adding that this year he had allocated Rp 75 billion to build low-cost apartments in Bandung, West Java, and Surabaya, East Java.

Junaidi explained that the funds for the construction of the apartments were allocated from the government's annual dividends, which were held to help improve the social welfare of workers.

He called on the government to enforce Law No. 3/1992 on social security to net more workers to participate in social security programs so that it could provide more funds to develop more low-cost housing for workers.

"The more workers and companies participate in the programs the more funds Jamsostek will have to build cheap apartments for workers," he said.

He added that, so far, only around 25 percent, or 23 million, of a total workforce of almost 90 million participated in social security programs.