New regulation on land use permits introduced

New regulation on land use permits introduced

JAKARTA (JP): The city administration will now issue land use
permits only after developers inform related institutions of the
exact location for the establishment of the required social and
public facilities.

Deputy Governor for Economic and Development Affairs TB Rais
said yesterday that the new regulation for the issuance of land
use documents is designed to motivate the concerned institutions
to demand that developers fulfill their commitment to build and
hand over public facilities to the authorities.

By law, a property developer is obliged to hand over the
roads, gutters, school buildings, parks and worship places built
in their housing complexes to the city authorities after a
certain period of time.

"Before the issuance of the permits, representatives of
concerned institutions, such as the offices of recreational parks
and of education, will be invited to a meeting to have a look at
the planned locations for the facilities to be built by the
developers," he said.

During those meetings, the officials from the related
technical institutions are expected to fully understand the
location of the facilities to be given to the authorities, Rais
said.

"Thus, they are also responsible for securing the city's
assets," he said. "The authorities will not hesitate to
continuously pressure developers which have already obtained
permits but fail to fulfill their commitments."

According to Rais, a number of property developers are still
facing certain "problems" in handing over the facilities to the
city authorities even though they are ready to do so.

One developer, for example, had to temporarily postpone the
construction of a school in their property area due to the
limited number of students, he said.

Rais vowed to prevent the plots of land designated by the
developers for public facilities from being seized by third
parties.

He also disclosed that there are still a number of developers,
who refuse to hand over their public facilities to the
authorities.

Area of land

He said that the area of land for the establishment of the
facilities, which have not yet been handed over to the
authorities, reached a total of 1,845 hectares. The plots in
question are estimated to be worth about Rp 3.6 trillion (US$1.65
billion) under the current land price of Rp 200,000 per square
meter.

Governor Surjadi Soedirdja said recently that the city
administration has received social and public facilities built on
a total area of only 178 hectares.

The governor said that his office will carry out an in-depth
investigation of the 536 land use documents, which have been
issued since 1971.

Surjadi said that the 536 documents involve projects that
should have social and public facilities on a total of 2,023
hectares. (bsr)