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)