Thursday, 11 July 2013


The Ministry of People’s Housing [Kemenpera] reported that they were today making inventory of around 50 big developers in Jabodetabek as an effort to exercised proportional and well-balanced building masterplan. In Permenpera Regulation No 10/201.2 on Housing Procurement and Residential Area Building.
The well balanced building materplan was based on the following proportion: two or three simple houses for every 2 medium type houses; plus one luxurious house. It was also mandatory for developers to save 20% of total floor area of commercial flats for building middle and lower class homes – in accordance with the Government’s Regulation Plan [RPP].
Agus Sumargiarto, Deputy of Areal Development Dept, Ministry of People’s Housing, stated in Jakarta on Monday [1/7/2013] that many developers were suspected as not fulfilling the requirement. However, in terms of number, Agus was in no condition to answer as he was still waiting for verification outcome. Agus remarked further that developers who failed to meet pre-conditions would be sanctioned administratively such as having their permit withdrawn or even brought to court. “We must underscore that developers are obliged to exercise a proportional and balanced masterplan of development” Agus remarked.
Meanwhile some observers were of opinion that the process of inventory making house buildings based on balanced planning by the ministry of people’s housing was felt as not appropriate because it was feared to become an arena of negotiation. Jehansyah Siregar, observer of Housing and settlement affairs of the Bandung institute of Technology [ITB] said that supposedly the Ministry make pre-evaluation first of the regions where the principle of balanced development failed to meet target last year.
Beside, according to Jehansyah, supposedly the Government empowers the provincial Government fists on how to control balanced development well: whether the Government should prepare housing zones or ensure not to let land speculation to happen and how the provincial Government should procure land for people’s housing through RTRW space planning.
Jehansyah said that supposedly the Ministry did not contact developers directly because every development was almost certainty related to provincial Governments through various instruments such as and utilization permit, city planning and space planning permit, areal classification and donation. He rated that direct investment was useless although rule making was in the domain of the Central Government. This inventory making had the potential to develop into threat to developers where the Government would scare developers until finally the situation develop into a forum of negotiation between the Government and developers. In fact the instrument for alternative house building already existed i.e. the Central Government recommended building of perumnas low cost houses whereby ready for use land would be procured in large scale by BUMN financing.
Meanwhile the Government planned to increase maximum price limit for subsidized houses this year in line with increase of basic electricity price [TDL] and increase price of subsidized oil. Agus said that the would make a pre-observation first before determining the percentage of fuel price increase. The price increase was related to price of building material and increase of house prices.
Today, the maximum price of subsidized houses was set at Rp88 million – Rp145 million per unit depending on the zoning, and assumed total area of 36 sqM. If price were increased by 10% he said, it increase by Rp9.5 million and would come to above Rp100 million. According to Jehansyah, such was necessary so developers could continue to build subsidized houses. He expected that developers would not be badly injured by price increase of TDL and oil fuel. “If they were injured, supply would lessen while demand remained high. Finally the people had no choice but to buy expensive homes” he said. (SS) 

Business News - July 05,2013     

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