REI can punish erring members

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)