Soeharto warns of uncontrollable urbanization

Soeharto warns of uncontrollable urbanization

JAKARTA (JP): President Soeharto warned yesterday of the
danger of uncontrolled urbanization because most big cities are
not prepared to accommodate a speedy population growth.

Unless major anticipatory preparations are taken, densely-
populated cities will not be able to provide a sufficiently
healthy environment or quality public services, Soeharto said.

He cited the failure of agriculture sectors to absorb rural
workers as the factor which encourages unskilled workers to
migrate to urban areas.

"If the trend is not properly anticipated, social disturbances
will rise, the number of slum areas will increase and public
facilities will be (adversely) affected in big cities," Soeharto
said in the commemoration of World Habitat Day at the State
Palace.

The President, however, said poor people would not be
neglected and pledged the government's strong commitment to build
low-cost houses for needy people.

"We will rejuvenate slum areas with modern apartments which
can provide a healthy environment for them," Soeharto said.

He noted that the government has built 600,000 low-cost houses
in the current Sixth Five-year National Development Plan which
began in 1994.

"We have exceeded our target of 500,000 houses during the
period," Soeharto said.

The President also opened a national seminar on housing
resettlement during the ceremony.

State Minister of Public Housing Akbar Tandjung said in his
report to the President his office would be able to speed up the
construction of more houses thanks to a Rp 1 trillion (US$281.60
million) fund injected by state-owned workers insurance company
PT Jamsostek.

"Housing developers are relieved with the fresh money because
it will help them solve their liquidity crisis," Tandjung said
yesterday.

The company, which manages a social security program for more
than 11 million workers, injected the fund into the cash-strapped
state-owned PT Bank Tabungan Negara (BTN) to help finance the
construction of 80,000 low-cost houses.

Tandjung previously said about half of the 2,400 housing
developers had stopped activities due to skyrocketing lending
rates caused by the currency crisis.

As a part of the World Habitat Day commemoration, Vice
President Try Sutrisno inaugurated on Saturday 40,000 houses
built by state-owned Perumnas in Parung, Bogor, West Java. (prb)