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View all search resultsNew policy sought for subsidized apartments
Property developers need a special policy to boost the development of subsidized, low-cost apartments (rusunami), having thus far been burdened by the high cost of various license fees, an official said recently
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roperty developers need a special policy to boost the development of subsidized, low-cost apartments (rusunami), having thus far been burdened by the high cost of various license fees, an official said recently.
Muhammad Nur Wakhid, secretary of the East Java branch of the Indonesian Real Estate Association (REI), told The Jakarta Post the high cost of license fees had hampered developers in constructing rusunami.
The REI has asked the government to issue a special policy in the hope of simplifying the licensing process for building rusunami.
The policy should also ensure the prices of subsidized apartments are not too prohibitive for low-income residents to buy.
The current price for a rusunami is set by the government at Rp 144 million. For some customers, that price is still too high, while for developers, it is not enough to ensure proper quality housing.
Nur said the REI had urged the Surabaya administration to issue a bylaw to resolve the issue.
He added the bylaw should provide a certain guidance for developers in constructing rusunami.
"We hope that later the licensing fees for subsidized apartment will be differentiated from those for commercial apartment developments," Nur said, adding that to date, rusunami developers had to pay licensing fees, such as for building permits (IMB), that were as high as those for developers of commercial apartments.
"Commercial apartment developers can sell their apartments for much higher prices - up to three times higher than subsidized apartments, so it's not fair," he said, adding government needed to apply a "friendly" tax on those wanting to expand subsidized apartments.
There is no significant difference between rusunami and simple subsidized homes (RSH), Nur went on, so the government needed to apply different taxes for rusunami and commercial apartments.
The high licensing fees could force developers to cancel plans to build subsidized apartments.
To date, there were only two such projects planned for construction in Surabaya: Puncak Permai and Tidar Cosmo Park. Neither has been completed.
With the price for rusunami firmly fixed, Nur said, property developers under the REI would urge the local administration to issue the bylaw.
