Slum residents to get ownership of their land
JAKARTA (JP): The city administration is currently preparing a new decree that will allow residents living in a Pademangan slum area in North Jakarta to upgrade the legal status of their properties from state land into personal ownership, an official said on Wednesday.
Deputy Governor of Economic and Development Affairs Budiardjo Soekmadi told reporters that the Pademangan area was currently under a renovation program.
The issuance of the decree would annul the status of the renovation program on a 6.5-hectare plot of land, he said. The total area covered by the renovation program is 190 hectares.
"Insya Allah (God willing), we're only waiting for the governor to sign the decree. We expect it could be announced later this month," he said.
Under the renovation program, local residents would be prevented from applying to have the status of their land upgraded. Land with personal ownership status usually has higher market prices.
Two years ago city-owned developer company PD Sarana Jaya planned to convert the 190-hectare slum into a business and housing complex for middle and low-income people.
The project, estimated to cost about Rp 1.25 trillion, was expected to be completed in five years even though no starting date for the project had been set.
The city planning office, however, dropped the project plan last week due a shortage of funds.
The Pademangan slum is the first of nine areas under the city administration's renovation program whose residents will be given the opportunity to change their land status under Ministerial Decree No. 6/1998.
The other locations to be granted similar treatment are areas in Tanah Abang (40 hectares), Kebon Melati (47 hectares), Senen (42 hectares) and Pasar Baru (32 hectares) in Central Jakarta; Kebayoran Lama (48 hectares) in South Jakarta; Jatinegara (46 hectares) in East Jakarta; Penjaringan low-cost apartment (10 hectares) in North Jakarta; Duri Utara low-cost apartment (7.8 hectares) in West Jakarta.
State Minister of Land Affairs/Chairman of the National Land Agency Hasan Basri Durin issued a policy on land ownership on June 12, which allows house owners to change the status of their land to ownership.
Under the old central government policy, land in housing areas is mostly owned by the state. Citizens are permitted to build on the land either to live in or to open business.
The policy stipulates that people acquiring land to build a house (HGB) are required to apply for a 30-year title, which is extendible for another 20 years. Titles for land appropriated for business purposes (HGU), such as building a shop or a factory, are valid for 35 years and extendible for another 25 years.
Ministerial Decree No. 6/1998, which aims at helping the less well-to-do, also allows procurement of personal ownership status for a shop-house.
It limits the maximum area of a home with personal ownership status to 2,000 square meters, otherwise the property is given HGU status and treated as such.
People seeking ownership status for up to 200 square meters of land are exempt from fees. (ivy)