Request to build fewer cheap houses refused
Request to build fewer cheap houses refused
JAKARTA (JP): Deputy Governor of Economic and Development
Affairs Tb. M. Rais strongly rejected yesterday a demand from
developers for a reduction from 20 percent to 5 percent in their
obligation to build cheap apartments of land appropriated.
"It is difficult for the administration to approve the
developers' request," Rais told reporters yesterday after
attending a meeting at City Hall.
In a meeting with City Council members on Thursday, the
developers urged the municipality to allow them to build less
low-cost apartments or pay cash instead of building the
apartments.
Rais said, however, that the developers' participation in the
low-cost apartment development was badly needed to help provide
decent housing for poor people living in slum areas. The
construction of more low-cost apartments also constituted the
main alternative to solve the city's increasingly complicated
housing problem, he said.
He said that offering cash directly to the administration in
exchange for the developers' obligation to build low-cost
apartments was not acceptable either.
"What the administration wants is more low-cost apartment
buildings, not cash," he said.
Despite his rejection, Rais still wanted to use the
developers' request as input to the municipality. "We'll analyze
it further," Rais said.
Rais emphasized the governor's statement that Jakartans,
whether they like it or not, should live in apartments in the
future due to land shortage.
"We hope developers support our policy by providing more low-
cost apartments," Rais said.
According to Gubernatorial Decree No. 540/1990, developers who
gain permits to appropriate at least 5,000 square meters of land,
or more, are obliged to set aside 20 percent of their projects
for the construction of low-cost apartments.
The decree was issued to provide adequate housing for the poor
and to help eliminate slum areas.
Chairman of the council's Commission D for development
affairs, Ali Wongso H. Sinaga, said yesterday that the commission
could not accept the developers' proposal either.
"If the municipality approves the proposal, the city cannot
reach the target of building around 300,000 apartments in the
next five to 10 years," Ali said.
He said that under the decree, the developers building the
cheap apartments could own the facilities.
"But when they want to lease or sell them, their prices will
be set by the administration," Ali said.
Previously, all low-cost apartments built by private
developers had to be handed over to the municipality.
Ali also supported Rais' decision to reject the developers'
request to pay cash instead of constructing the apartments.
"The cash offer will not solve the housing problem because
there's no guarantee that the money is enough to construct low-
cost apartments. Besides, the municipality will also face
problems in finding the land," Ali said.
He urged the municipality to force all developers to comply
with their existing obligation.
"If necessary, the city can publicly name developers who fail
to comply with the regulation," Ali said.
Yan Mogi, chairman of the city branch of the Indonesian Real
Estate Association (REI), said Thursday that out of 50 REI
members developing apartment projects in the city, only 10 had
met the requirement set by the administration.
He said that principally, developers were willing to support
the program to provide more low-cost apartments. However, many
developers could not afford the construction due to high land
prices and development costs, he added.
"If developers force themselves to build low-cost apartments,
the prices won't be affordable to low-income people," Mogi said.
(ste)