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Rent-and-buy scheme proposed for low-cost apartments
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Touch up: A construction laborer works at the construction site of a low-cost apartment project in Kendari, Southeast Sulawesi, on April 10. The government plans to provide over 12,000 apartment units for low-income residents in Indonesia, including laborers and civil servants. (Antara/Jojon)
T
he Public Works and Housing Ministry plans to issue a regulation that will detail the ownership transfer procedures of low-cost apartments, particularly those built with support from the state.
The ministry’s low-cost apartment director, Kuswardono, said the regulation would provide legal certainty for low-income citizens who intend to buy the apartments that they rent.
“With such a regulation, tenants can own the low-cost apartments they have occupied for years,” he said in a statement, as quoted by Kontan.co.id.
(Read also: Jokowi inaugurates low-cost apartment construction)
The regulation will regulate the rent-and-buy concept, in which tenants’ monthly rent payment is considered as a monthly installment to purchase units in which they reside. The tenants can then own the flats following the completion of the installments.
Kuswardono added that the regulation also aimed at reducing the government’s subsidies for low-cost apartments.
“The subsidies to manage low-cost apartments are still high. With the concept of rent-and-buy, we are hoping to reduce the burden.” he said. (mrc/hwa)
