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Jokowi-Kalla to focus on building affordable housing
The forthcoming Joko âJokowiâ WidodoâJusuf Kalla government is set to prioritize the construction of cheap and subsidized housing to tackle skyrocketing house prices
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he forthcoming Joko 'Jokowi' Widodo'Jusuf Kalla government is set to prioritize the construction of cheap and subsidized housing to tackle skyrocketing house prices. Specifically, it is being reported that the new government will try and construct more low-cost apartments to increase the supply of housing for low-income residents.
'Building homes for low-income residents will be a crucial move as it can gradually alleviate slums and, at the same time, tackle the issue of homelessness,' Enggartiasto Lukita, the Jokowi-Kalla transition team's head of housing and property division, said, as quoted by kompas.com on the sidelines of the Property Indonesia Awards in Jakarta on Wednesday.
Enggartiasto said house supply and demand must be improved through methods including making use of abandoned land owned by the government and state-owned enterprises, as well as driving up demand through the housing loan liquidity facility (FLPP).
'We will cooperate with state-owned companies in acquiring land, but the priority now is to utilize government land. State-owned companies would have to clear their books if we were to acquire land from them. What we want is to work together with these companies,' he said.
Enggartiasto went on to say that leaving the job to the private sector would also likely be more difficult.
Previously, Association of Indonesian Housing Development (APERSI) head, Ari Tri Priyono, said it was getting more difficult for developers to build subsidized and affordable housing in the Greater Jakarta area, due to rising land prices and the difficulty of acquiring the land itself.
Complicated bureaucracy and continual increases in high-cost housing in the region have also caused problems for low-cost housing construction. (dyl/ebf)
