Developers Ask Govt to Invigorate Low-Cost Housing Construction
The Indonesian Association of Realty and Settlement Developers (Apersi) has asked the government to enforce existing regulations to speed up the construction of badly needed low-income housing, its chairman said on Wednesday.
Apersi chairman Eddy Ganefo said that sufficient incentives and regulations had been put in place, but that inconsistent application across the country meant that construction was slow, adding that sluggish permit processing and frequent land disputes were a drag on building 15 million low-cost housing units.
So far, only 40,000 units have been built — 20,000 of them last year.
“A 2013 regulation from the National Land Agency [BPN] has not been correctly implemented due to land and permit issues,” Eddy said, referring to a bylaw on land and property transactions.
Speaking on the sidelines of the association’s congress in Jakarta, Eddy said the Housing Ministry and relevant stakeholders should push for a solution so that construction could be accelerated.
Housing Minister Djan Faridz said he would coordinate with the BPN to fix the problem.
“We will discuss this together and seek a solution,” Djan said.
The government defines the low-income bracket eligible to obtain state housing subsidies as households with an income of less than Rp 3.5 million ($357) per month or earn between Rp 3.5 million and Rp 5.5 million a month.
Both categories are eligible for specific housing subsides. A pay sheet must, however, be provided with a subsidy application, meaning the millions of Indonesians working in the informal sector are precluded from receiving the subsidy.
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