Indonesian Political, Business & Finance News

New rule on low-cost apartment

New rule on low-cost apartment

JAKARTA (JP): The city administration is preparing a new
regulation which will require developers to build low-cost
apartments instead of the modest houses they currently have to
build, an official said.

H. Prawoto Danoemihardjo, the city's secretary assistant for
the development administration, told reporters on Thursday that
the new regulation will constitute a modification of Regulation
No.540/1990.

"Under the existing regulation, developers are obliged to set
aside 20 percent of housing estate land for the construction of
modest houses," he said.

Under the new regulation, however, the developers will no
longer be asked to build houses but low-cost apartments.

Developers to be asked to build the low-cost apartments are
those whose lands for each housing estate covers at least 5,000
square meters, he said.

Unlike the social and public facilities which have to be
handed over to the city administration, the low-cost apartments
will be under the supervision of the developers after
construction, Prawoto said, adding that the low-cost apartments
have to be built in the same vicinity as the housing estates.

"What we need now is the social awareness of the developers.
The developers should not make any excuses by saying that it is
getting increasingly difficult to find land in Jakarta for the
development of low-cost houses," he added.

Minister of Public Housing Akbar Tandjung urged the city
administration recently to cancel building permits owned by
developers who refuse to abide by the rules. (31)

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