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Jakarta Post

Ministry to provide low-cost apartments

The State-Owned Enterprises Ministry will turn a slum area in Kemayoran, Central Jakarta, into an integrated area for commercial and low-cost apartments

Corry Elyda (The Jakarta Post)
Wed, June 18, 2014

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Ministry to provide low-cost apartments

T

he State-Owned Enterprises Ministry will turn a slum area in Kemayoran, Central Jakarta, into an integrated area for commercial and low-cost apartments.

Himawan Aried Sugoto, the president director of state-owned house developer Perum Perumnas, the representative of the ministry for the project in question, said after meeting with the city administration on Tuesday that both parties had agreed to revamp the 14.4-hectare plot of land.

'€œThe area will combine both low-cost apartments and a commercial zone,'€ he said.

Himawan said his company was already building two towers of low-cost apartments to relocate the squatters who are currently occupying the land plot '€” the management rights of which are owned by the company.

The company has spent around Rp 80 billion (US$6.77 million) on each tower.

'€œThe first two towers will be finished at the end of the year and will be able to accommodate the squatters,'€ he said.

Himawan said, however, that both the city administration and the company had not settled several matters, including about the type of low-cost apartments.

'€œWe want to build ownership apartments that we can sell at a cheaper price but the city administration wants rental apartments,'€ he said.

Himawan said both parties would discuss the plan further in the near future.

Acting Jakarta governor Basuki '€œAhok'€ Tjahaja Purnama said he agreed with the plan but Perumnas should learn from the Kalibata apartments in South Jakarta.

The Kalibata apartments were designed as low-cost units but the area turned into a commercial area. '€œThe price of the Kalibata apartments has now reached Rp 500 million per unit,'€ he said.

'€œWhen we sell an apartment at a low price for a low-income family, they will resell the unit for a higher price and go back to illegal dwellings,'€ he said.

Ahok challenged Perumnas to check the apartments its built to see whether the owners were still the original ones or not.

He said if the project was agreed, the city administration would help Perumnas relocate the squatters via negotiations.

Jakarta Housing and Administrative Building Agency head Yonathan Pasodung said around 1,100 squatters were estimated to be settled in the area.

Yonathan said it would take around 10 six-story buildings on a 2.5-hectares land plot to accommodate them.

'€œIf the building has 20 levels, it only needs a 2-hectares plot of land,'€ he said.

Yonathan added the city administration preferred that the low-cost apartments were rented ones.

'€œThey could be managed by the city administration or state-owned house developer Perum Perumnas,'€ he said.

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