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Property deregulation to cut 70% of licensing cost: Minister
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A security guard stands at the gate of a housing complex located in Palmerah, West Jakarta, on Thursday. (The Jakarta Post/Ivany Atina Arbi)
T
he government eyes a 70 percent cut in the property licensing cost through the 13th economic policy package, to further support the national program dubbed as "the 1 million houses".
Three months after the previous economic package, the government finally announced the 13th installment at the State Palace in Jakarta on Wednesday. Unlike the past 12 packages that aimed to create stimulus for businesspeople, the latest package is aimed at incentivizing low-income people (MBR).
"With the reduction, revocation and acceleration of the licensing process for the construction of MBR housing, the cost of licensing will be only 30 percent of the current cost, down by 70 percent," Coordinating Economic Minister Darmin Nasution said.
The newly unveiled policy is focused on simplifying red tape to build affordable houses for the low-income market, from the existing 33 stages to only 11 stages and cutting the time to process the permits from 769 to 981 days to only 44.
The presidential regulation on the new policy would be signed within the next 10 days and was expected to take effect soon after the regulation's issuance, Darmin said, adding that the government had involved developers with Real Estate Indonesia (REI) during the regulation's drafting.
The Public Work and Public Housing Ministry's directorate general of housing finance Maurin Sitorus said the deregulation would significantly lower MBR housing prices. However, the ministry was yet able to calculate to what extent this deregulation would have on lowering property prices. (ags)
