S

tate enterprises have agreed to sell or give their idle land to make way for the government low-cost apartments program in Jakarta.

A memorandum of understanding was signed on this Wednesday by state housing agency Perum Perumnas and four other state firms: steel manufacturer PT Krakatau Steel, logistic firm Perum Bulog, railway company PT KAI, and airport management company Angkasa Pura I.

Perumnas president director Himawan Arief said the agency was expecting to receive or buy around 20 plots of lands from the cooperating state firms.

He also said that currently the company was constructing 31 apartment towers in Jakarta worth Rp 60 billion (US$5.22 million) each. But it was still rather short of its targeted minimum of 50 towers planned.

"We hope that we can meet the minimum target within the next two years, but we're aiming for more than the target," he said.

With around Rp 60 billion for each tower, the agency has to secure a total investment of around Rp 3 trillion to meet the minimum target.

"We will finance the construction of the towers gradually, and we can also use the land as collateral for loans," He said.

Perumnas will give priority to offer apartments to employees of the four state enterprises which signed the MoU, "if they want to buy a unit in the apartments," said Himawan.

However, the agency would not close the door to other people from lower-middle class families who might be interested in buying units in these apartments.

Himawan is optimistic that the financing of the program will go smoothly, as demand for low cost apartments in Jakarta is very high. "A good location can be the selling point, in our towers in Kemayoran for example, we have sold 1,700 units in five towers and there are still another 8,700 people on the waiting list," he said.