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Jakarta Post

Low-cost apartment rent increase suspended

  • News Desk

    The Jakarta Post

Jakarta   /   Mon, August 20, 2018   /   04:15 pm
Low-cost apartment rent increase suspended The Marunda low-cost apartments in North Jakarta on Feb. 2. (kompas.com/Ardito Ramadhan D)

Jakarta Governor Anies Baswedan has decided to revoke a decree on increasing the rate for low-cost apartment rent for further evaluation.

Pak governor has directed that we suspend the decree. We will evaluate [the decree] first,” acting head of the Jakarta Public Housing and People’s Settlement [PUPR], Meli Budiastuti, said as quoted by kompas.com on Monday.

Previously, Anies issued Decree No. 55/2018 on low-cost apartment rent rate increase for 15 apartment blocks. The decree regulated that the rates would increase by around 20 percent. Not only were regular citizens affected by the decree, but evictees relocated to the apartments from many eviction locations in Jakarta also had to pay more to put roofs over their heads.

Meli further said one of the considerations to hold up the decree was that many evictees would object to the rate increase. Moreover, the PUPR noted that there were many cases of rent arrears in low-cost apartments throughout Jakarta. 

Total rent arrears in the city have reached Rp 43.1 billion (US$2.95 million) from 24 low-cost apartments. The amount consists of rent arrears and unpaid water and electricity bills, which many regular residents living in the apartments also failed to pay. (gis)