REI calls for guideline on permits revocation

JAKARTA (JP): The Association of Indonesian Developers (REI) has urged the National Land Agency (BPN) to set up a clear-cut guideline before revoking the permits of the developers who have kept their land vacant for years.

Aside from eliminating abuse of the permits, the guideline will protect developers who are actually carrying out the projects, REI chairman Edwin Kawilarang told a press conference Wednesday.

"Although permits have become a commodity to many housing developers, who acquire them just to speculate on the rising prices of land, many developers are actually doing their jobs," he said.

In accordance with the Oct. 3 decree issued by BPN, the agency will not grant new permits to developers before it takes a complete inventory to evaluate how much progress has been made by the developers who received permits to build in the Bogor, Tangerang and Bekasi (Botabek) areas.

The evaluation, however, lacks strong criteria, Edwin said.

"Problems often rise during the inventory taking: If a developer owns 7,000 hectares of land, 3,000 hectares of which have been used, would BPN then revoke the permit?" he asked, adding that REI's task is to help set the guidelines to go along with the decree.

According to Edwin, the issuance of the decree has disrupted the productivity of the Botabek housing developers, despite the rising demand for housing in the areas.

"Developers who are starting on their next housing project cannot obtain the permits until the evaluation is done," he said.

He called on the BPN to cut through the red tape by granting small developers permits in order to make effective use of the land immediately.

Only 15 percent of the 92,000 hectares of land that the agency granted permits for has been used. (04)