Money for low-cost apartments ample

Bambang Nurbianto, The Jakarta Post, Jakarta

With an annual budget of more than Rp 14 trillion (US$1.37 billion) this year and nearly Rp 17 trillion for next year, the Jakarta administration should have no problems in developing low- cost apartments for residents now living in slum areas.

However, money has apparently been no guarantee of progress.

As of August, the City Housing Agency had spent less than 5 percent of the Rp 67 billion allocated for the construction of 1,480 low-cost apartments and another Rp 76.59 billion for land acquisition in a number of places for more low-cost apartment projects next year.

"We are disappointed by the housing agency's performance. We cannot see the results of allocating money for that purpose," Sayogo Hendrosubroto, chairman of City Council Commission D for development affairs told The Jakarta Post on Monday.

He said the council fully supported the administration's program to build as many low-cost apartments as possible so that it could gradually relocate the tens of thousands of families living in slum areas.

The housing agency estimates that around 80,400 families are living in shanties.

Sayogo demanded that the agency prioritize land acquisition in areas where a total of 3,000 low-cost apartments, financed by the city budget for 2006, are to be constructed.

The administration is now seeking another Rp 380 billion from the City Council for next year's projects in several areas, mostly in Marunda, North Jakarta.

In the proposal admitted to the City Council, the administration plans to build 15 blocks of low-cost apartments in Marunda, each of which would have between 100 and 200 units.

The housing agency is yet to acquire any land for the project although 20,000 square meters in Marunda is needed.

At present there are some 20,000 low-cost apartments in the city built by a number of agencies, including state-owned housing company PT Perumnas and city-owned developing company PD Prasarana Jaya.

The problem is many of them are occupied by middle-class workers instead of the targeted low-income families who continue to live in slum areas.

Governor Sutiyoso has repeatedly promised to relocate the families. He said that by the end of his term in 2007, he would develop at least 6,000 low-cost apartments.

He stressed the need for stronger supervision of leasing arrangements so that low-income families received first priority.