'Several interests behind withdrawal on land-use ban'
'Several interests behind withdrawal on land-use ban'
JAKARTA (JP): The loss of profit and power from issuing land
permits is one probable reason behind the withdrawal of a policy
stopping the issuance of land-use permits, a researcher said.
Endang Sukendar of the Bandung-based Akatiga analysis center
on land, labor and the informal sector, said yesterday there was
no acceptable reason for the withdrawal of a policy issued last
October by the National Land Agency.
"Political and economic interests are most likely behind the
new policy announced on Feb.18," he said.
On Oct. 3 the agency instructed its authorities in Bogor,
Tangerang and Bekasi not to issue any more land-use permits for
housing projects before an evaluation of the use of existing
permits was conducted. The policy was aimed at curbing the
neglect of land by housing developers.
State Minister of Agrarian Affairs/Chairman of the National
Land Agency Soni Harsono had said there was ample land for
housing until 2018. He said the agency had issued permits for
92,298 hectares of land, out of which only 13,276 hectares had
been developed.
"The October policy must have hurt many authorities who lost
power and levies from the issue of permits," said Endang,
coauthor of a 1996 book titled Land as Commodity, A Critical
Analysis on Land Policy of the New Order Government.
The minister's Feb. 18 letter on guidelines to control land-
use permits for housing only said the evaluation "showed a wide
variation in progress (of developers that had been issued
permits), from those that have not gained land at all to those
that have already completed housing projects according to
schedule".
It listed requisites on developers that could apply for permit
extensions and new permits.
One category allowed to extend permits were developers that
built low-cost housing.
Endang said this was difficult to accept, saying with so many
levies on permits and high land prices, it would not be possible
for developers around Greater Jakarta to build cheap housing,
meaning housing for Rp 5 million.
"Getting rid of levies would be a start to curb land prices
for developers and customers," he said.
Levies
Endang cited sources at West Java offices related to land
issues who said levies for a land-use permit, issued by local
offices of the National Land Agency, was Rp 500 per square meter.
"So if a developer needs one hectare he would need Rp 5
million just for the land-use permit," Endang said. Developers in
Bekasi confirmed both the land-use levy and another Rp 500 per
square meter to get the ijin prinsip permit, a prerequisite to
gaining a land-use permit.
This permit entitles the developer to build a housing project,
based on a review of spatial plans by the local offices of the
spatial plans agency.
He said a developer with a project in Jakarta's outskirts in
West Java was told to provide "a Baby Benz" to get permits for 50
hectares of land.
"This would make sense with levies of Rp 500 per square
meter," Endang said. A "Classic Automatic" Benz is around Rp 244
million.
When the agency announced the October policy, officials were
stripped of their power to gain such resources, Endang added.
He said speculators who lost access to land-use permits, which
were crucial to gaining land to sell, would also probably be
hurt.
In a similar tone to property observer Panangian
Simanungkalit, Endang said the recent policy showed
inconsistency. (anr)