Government to supervise developers involved in low-cost housing construction
The Jakarta Post
The government is preparing a regulation that will become a legal basis for relevant government institutions to supervise developers taking part in the construction of low-cost houses with state money for low-income people.
"We have the right to issue the regulation because [they use] FLPP [government-backed mortgages to build houses]. So we have the right to watch them," Public Works and Public Housing Minister Basuki Hadimuljono told reporters on the sidelines of the Indonesia Development Forum (IDF) in Jakarta on Thursday.
He, however, did not go into any detail on the type and content of the regulation, saying that it would simply complement the supervision carried out by lenders.
The ministry hopes to disburse Rp 11.47 trillion (US$860.2 million) under the FLPP scheme this year, with which it will provide a subsidy for 20 years of installments and a fixed interest rate of 5 percent for people earning less than Rp 4 million per month.
The government launched the One Million Houses program to reduce the country's housing backlog, which currently stands at 11.4 million, by constructing 1 million houses each year.
Basuki admitted that the dream had fallen short so far as only 1.5 million houses had been built as of December last year.
"Until July this year, around 449,000 houses have been built," he said. (bbn)
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