Revokation of housing permits likely: Minister
Revokation of housing permits likely: Minister
Moch. N. Kurniawan and Berni K. Moestafa, The Jakarta Post, Jakarta
The government warned developers it could revoke their housing
permits should an evaluation reveal the city administration had
wrongfully issued them causing environmental degradation and
contributing to widespread flooding.
Minister of Resettlement and Regional Infrastructure Soenarno
said a team would soon start evaluating the housing developments
in Jakarta, including the permits they were issued.
"If permits from the previous administration are found to have
been detrimental to the people's interest, then why not (review
it)," he told reporters after a coordinating meeting with
economic ministers on Tuesday.
Soenarno added that the government would not shy away from the
revocation of any licenses it deemed illegal.
But he declined to say whether revoking them would lead to the
demolition of existing housing complexes.
The evaluation he said would cover three aspects; technical,
ecological and administrative.
He added that the evaluation was aimed at requiring developers
to comply with the requirements attached to their housing
permits.
"There will be sanctions if they (developers) fail to meet
these requirements," he said.
The government plans to impose a six-month ban on new housing
licenses, following charges of unregulated construction leading
to Jakarta's worst flooding in decades, which killed some 40
people.
Soenarno said that one project the government would most
certainly evaluate was the Pantai Indah Kapuk (PIK) housing
complex in North Jakarta.
PIK was built on protected mangrove forest in the early 1990s.
The city administration is in charge of issuing housing
permits, and many believe PIK got its permit due to persuasive
lobbying.
"We all know from before that lobbying between businessmen and
the city administration can get such things done," Soenarno said.
He said he wanted PIK to cease the construction of new houses,
pending the evaluation of its project.
Elsewhere, The Jakarta Real Estate Association (REI Jakarta)
said it supported the planned evaluation, and was upbeat that it
would see at least a 5 percent growth in housing development this
year.
"We welcome the latest plan as it doesn't really affect us.
Besides, I'm optimistic many of us will pass the evaluation. It
will be a great opportunity loss for our members should they fail
to meet all requirements," REI Jakarta chairman J.F. Maroef told
the Jakarta Post.
He said the current growth target was still achievable due to
high housing demand and easier housing loans from banks.
The impact of a six-month suspension of new housing permits
was also likely to be minimal as demand would normally be low
until June, he added.
Maroef expected that modest houses, which account for about 60
percent of the total housing construction, would lead the demand
growth with about 7 percent to 8 percent growth this year.
REI vice chairman, Lukman Purnomosidi expected Jakarta's
housing development to make up 40 percent to 45 percent of the
country's total output this year.
That would translate into 84,000 to 94,500 houses out of
210,000 new houses across the country, he said.
While Soenarno said the evaluation would start with large-
scale developers, Lukman urged instead the government to
prioritize reviewing the projects for modest housing.
He argued the quick completion of a review on these projects
was vital, citing the fact that their development was more
massive and concerned low-income consumers.
He expected the evaluation of this housing type to be
completed within a month to allow developers to apply for new
licenses.