Monday, 19 December 2011


            Exemption of licensing cost is continuously attempted to accelerate provision of housing affordable to low-licensing cost is continuously attempted to accelerate provision of housing affordable to low-income society. The Ministry for Public Housing promised to discuss this matter with the regional government.

            Minister for Public Housing, Djan Faridz, said that cost of license for house construction could reach 30% of total expenditure spent by developers. This makes price of houses continue to increase and unaffordable to the society. Therefore, by reducing licensing cost, house prices will be cheaper and more affordable to the society. In addition to licensing problem, he also encourages so that low-income housing could be exempted from cost of electricity and water.

            Removal of licensing cost and cost of electricity and water installation is done in an attempt to reduce deficit in housing demand of last year at 13 million units.

            In connection to the removal of cost of license for building construction (IMB), Ombudsman of the Republic of Indonesia (ORI) asked the regional government to optimize coordination with the National Land Agency (BPN).

            Member of ORI, Khoirul Anwar, is in the opinion that the process of granting of IMB to the society has so far been very slow. Therefore, the regional government must optimize coordination with BPN. Meanwhile, the regional government should have valid data concerning grant of IMB.

            Head of Public Relations and Administration Bureau of the National Development Planning Board (Bappenas), Maruhun Batubara, stated that Bill on Land Provision for Development which has not been passed into law is the factor that hampers acceleration of construction of low-cost housing. Without the law, Law No. 1/2011 on Housing and Residential Areas passed early this year and Law No. 20/2011 on Low-Cost Apartment Units passed in October will become less effective.

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