T

he central government launched on Wednesday the first phase of a nationwide project to develop one million affordable homes, carried out simultaneously in Jakarta; Tangerang and Serang in Banten; East Kotawaringin in Central Kalimantan; Malang in East Java; and Ungaran in Central Java.

The Jakarta administration in cooperation with state-owned residential developer Perum Perumnas will carry out the project in Cengkareng, West Jakarta. Perumnas president director Himawan Arief Sugoto said that the firm would build a rusunami (subsidized apartment) complex on 4.97 hectares of land in Cengkareng.

'€œWe will build an apartment complex in Cengkareng. There will be 18 towers and 5,453 units,'€ Himawan said during the ground-breaking ceremony at the construction site on Wednesday.

He said the company targeted to finish 1,600 units this year and to complete the remaining units in the following year.

He added that each tower, which would need an investment of roughly Rp 51 billion (US$3.9 million), would have 24 floors. Himawan said that Perumnas aimed to provide complete facilities by building schools, grocery stores, kiosks and leisure centers.

Perumnas would sell the units starting from Rp 300 million for an 18-square-meter studio unit. Himawan said that the units would vary in size from 18 square meters to 38 square meters, with either one or two bedrooms and one bathroom. He said that Perumnas would cooperate with banks including state-owned Bank BTN, Bank BRI and Bank Mandiri, along with private lenders Bank Bukopin and CIMB Niaga for mortgages.

'€œThe buyers will be selected by the banks providing the loans as well as the Housing and Government Buildings Agency. Anyone may register to buy a unit, even non-Jakartans, but they will be selected rigidly,'€ Himawan said.

However, non-Jakartan buyers must change their residential status to Jakarta once they procure a unit.

Further, he said that the rusunami were developed for lower-income households with a maximum income of Rp 7 million. The buyers, he said, would get a subsidy from the government in the form of lower down payments and lighter mortgage interest.

'€œTenants may only resell their units if they have resided in the apartment for at least 20 years. They may not rent their units. Perumnas and the Jakarta administration will monitor the tenants,'€ Himawan said.

Separately, Governor Basuki '€œAhok'€ Tjahaja Purnama warned that Perumnas, the Housing and Government Buildings Agency and banks must ensure careful selection of buyers who deserved to live in the rusunami.

'€œI want the selection to be transparent. I don'€™t want to hear of investors buying hundreds of units and renting them for an insanely high price. If I hear of this happening, I will report you [Perumnas, the housing agency and banks] for corruption,'€ Ahok said.

Separately, President Joko '€œJokowi'€ Widodo attended a launch in Ungaran, Semarang regency, for the ground-breaking of two rusunawa (low-cost rental apartments) for factory workers. Jokowi was accompanied by Public Works and Public Housing Minister Basuki Hadimuljono, Manpower Minister Hanif Dhakiri, Health Minister Nila Moeloek, Coordinating Human Development and Culture Minister Puan Maharani and Central Java Governor Ganjar Pranowo.

Jokowi said he was optimistic that the government would reach its target of building one million residences within one year.

Further, Minister Hanif said that the government would build 10,000 rusunawa units across 14 provinces for factory workers this year.