Minister warns estate developers

JAKARTA (JP): Minister of Public Housing Akbar Tanjung has warned real estate developers who have been delaying the construction of their projects to start building immediately.

"The government hopes those developers will start building houses for people because we have issued the location permits for them to build on 30,000 hectares of land in the greater Jakarta area," Tanjung said yesterday, in the inauguration ceremony of Citra Grand City housing complex.

Tanjung said if all developers build houses on the land it could meet the increasing demand for houses in the greater Jakarta area.

"The government will not hesitate to review the land permit of developers who delay their projects," Tanjung said.

The minister refused to reveal the number of developers which reportedly have been delaying their projects.

Tanjung said the government might be more selective in issuing such permits in the future.

"The government will also closely control the implementation of housing regulations," he said, adding that the Indonesian Real Estate Association should remind its members to obey the regulations.

Tanjung urged real estate developers to obey the regulations in providing land for public facilities and to fulfill their promises to their buyers.

"Developers often break their promises, and eventually buyers are disappointed because they do not get the facilities promised," Tanjung said.

He explained the main reason why the government issued the regulations which require developers to build various types of houses is to provide houses for all people.

"The 1:3:6 composition is made because people's buying power is so varied," Tanjung said referring to the concept in which developers should build six low-cost houses and three modest houses for every luxurious house they plan to build.

Citra Grand City, the sixth project of PT Citraland Estate, owned by real estate tycoon Ciputra, is a pilot project which will introduce a "city of the arts" concept.

When completed there will be various artistic items such as statues and paintings installed in the housing complex. The streets in the complex will be named after internationally acclaimed artists including painters, sculptors, singers and movie stars. An art gallery will be also built in the complex.(yns)