REI can punish erring members
JAKARTA (JP): City administration has urged the Jakarta branch of the Indonesian Real Estate Association (REI) to take firm action against developers that have failed to fulfill their obligations to build low-cost apartments.
Deputy Governor for Economic and Development Affairs Tb. Rais said yesterday that REI has the authority to help the city administration implement its program to provide low-cost houses for low-income people in the city.
"Therefore REI has also the authority to take stern action against its delinquent members," Rais told reporters.
He explained that the city administration needs full cooperation and support from the association because it is impossible for the administration to implement the program alone.
Rais said the association should not hesitate in withdrawing the memberships of developers that offer fictitious real estates for sale."This can also be applied to developers that have failed to build low-cost apartments," he added.
He said the city administration would continue asking developers to fulfill their obligations to build low-cost apartments in certain areas such as in Tebet, South Jakarta, and Bendungan Hilir, Central Jakarta.
The city administration's housing program is being hindered by the reluctance of most private developers to abide by the "balanced-housing" concept, with only four of the 66 developers in the city having fulfilled their obligations to build low-cost housing complexes.
Based on gubernatorial decree No. 540/1990, the city's 66 developers of luxury buildings are required to build six low-cost houses and three medium-cost houses for every luxury house they build.
Under the decree, the private developers are required to reserve 20 percent of their commercial sites for low-cost apartments.
However, up to now only four developers have fulfilled their obligations by building a total of 988 low-cost apartments.
The four developers are PT Danayasa Arthatama with 240 apartments in Tambora, West Jakarta, PT Catur Swasakti Utama with 160 apartments in Penjaringan, West Jakarta, PT Kuningan Persada with 292 apartments in Tanah Tinggi and another 296 apartments in Bendungan Hilir, Central Jakarta.
PT Mandara Permai is currently building 3,000 low-cost apartments in Pantai Indah Kapuk, West Jakarta. The project is expected to be completed by the end of 1997.
Currently, PT Setdco Graha Mandara is still planning to build 288 low-cost apartments in Tebet, South Jakarta.
Private developers have been asked to take part in the development of low-cost apartments as the city administration can manage to build only 3,150 apartments per year, or 30 percent of the total demand. The total demand is projected to reach 10,500 per year. (yns)