Jakarta. Government will soon issue a regulation on simple yet proper housing, such as low-cost apartment, in inner-city in a bid to improve efficiency and reduce inequality.
“Currently, we only have ministerial regulation concerning public housing. Next, we will bring the regulation to the next level by issuing Government Regulation,” said Vice President Jusuf Kalla when opening the Indonesia Property Expo 2016 held at the Jakarta Convention Center on Feb. 13.
Limited lands available in inner-city, the Vice President added, should change people’s mindset on housing.
“A house does not always necessarily mean a landed house, it could be an apartment. We have to change this mindset,” he said, adding that government is getting ready to build 1,000 apartment towers in Jakarta and other cities in the country.
In the future, Mr Kalla said, rich people would stay in a landed house relatively far from the inner city as they have their own vehicles to go to their workplace, and vice versa.
“Ideally, the lesser the income, the closer people stay from their workplace,” he said.
According to the Vice President, inequality can be clearly seen in cities rather than in villages.
“We can see many luxury housing complexes in Jakarta contrasted with slum housing nearby,” he said.
Mr Kalla then underscored the importance of low-cost apartments with good sanitation to reduce such inequality as well as to improve public welfare.
He then hoped government, state-owned Bank Tabungan Negara (BTN), state-owned residence developer Perum Perumnas and other stake holders to make a synergy to realize affordable yet comfortable housing for the public.
Mr Kalla then warned that the low-cost housing not to be made as an investment by the rich.
”The low-cost apartment is intended for the poor, not for speculative business practices. We have to prevent this to happen from the very beginning,” he said.
Lower interest rate
At the ceremony, the Vice President appreciated BTN that has lowered its interest rate to 6.6 percent for housing loans, especially for those with low income.
“We have lowered the rate of people’s business credit KUR by 22 percent that is now become only 9 percent. At the end of the year, the interest rate, insya Allah (God willing), all will be no more than 7 persent,” affirmed Mr Kalla, adding that no country will progress with high interest rate.
He then promised that government will give more subsidy for those with low income and small, micro, and medium enterprises to develop.
Previously at the same event, CEO of BTN Maryono reported that the Indonesia Property Expo that would run from 13 to 21 Februari 2016 is an annual event involving 250 property developers with 664 housing projects and 320 thousand housing units.
“During this expo, BTN has to give new housing loans worth around 1.5 trillion rupiahs,” he said.