Tuesday, 11 December 2012


The government will impose penalty on subsidized home developers if they do not bid public facilities (PSU) in accordance with the proposal submitted to the government. The amount of the penalty is 7.25% of value of un built PSU.

Starting August 2012, PSU building will be done through direct appointment of home developers who have had construction service license. Cost of development of PSU of subsidized housing has been completed by developer.

For development of PSU of subsidized homes at 145.000 units in 2012, the government has provided a budget of Rp 942.5 billion. But, up to August 2012, the fund has not been absorbed at all. Target of PSU to be constructed is 117.010 units, and only 95.000 units that have been realized. PSU consists of roads and canals with a price of Rp 6.5 million per unit of subsidized home.

Minister of Public Housing, Djan Faridz, said that proposal for subsidized housing’s PSU building by developers must be accompanied with submission of request for home financing liquidity facility (FLPP) by consumers. So, proposal for PSU submitted by developer must be accompanied with an order letter from consumers at least 50% of the number of houses to be built. It means that there will be no allocation of PSU budget to developers if it is not companied with an order letter.

Deputy Minister for Area Development at the Ministry of Public Housing, Hazaddin T. Sitepu, stated that stagnancy in the provision for PSU up to August 2012 was due to regulation change where provision of PSU for subsidizes housing is no longer done through tender, but through direct appointment of contractor developer.  

Business News, September 21, 2012 

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