Supervisory Board for Apartments Proposed Under Local Government

BY IM SURYANI

Property

Tuesday, 07 06 2011

JAKARTA (IFT) – The Ministry of Public Housing believes that the supervisory board for apartments, which is still being discussed, should be under the local government as issuers of development permits in the area. With this, local governments will be more active in developing and overseeing the vertical housing  projects.
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“It is unnecessary to form the supervisory board into a specific national agency. This is where the central government distributes to the local governments their participation in the housing sector,”  said Suharso Monoarfa, Minister for Public Housing, on Monday.
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The working committee on the regulation on apartments is still debating whether the supervisory board for apartments should be an autonomous agency directly under the President or the Ministry of Public Housing. According to the House of Representatives, these are under the President in developed countries.
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This supervisory board is expected to coordinate the development of apartments with the community and supervise the construction itself. The government acts only as the national housing regulator to immediately resolve the housing backlog.
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Several problems deterring the ratification of the law includes the horizontal separation between the status of land acquisition and building, and the pre-sale restrictions before the developer has completed a minimum 20 percent of the project.
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Housing Reform
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Jehansyah Siregar, an expert in housing from the Institut Teknologi Bandung, said the housing reform must carry out its function as the national housing agency than by establishing new institutions. This is in line with the idea of the House of Representatives to identify the agency which will be in charge of the construction and supervision of the national housing.
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“This will coincide with the vertical residential housing unit implementation. The President has also agreed on the plan. In comparison with several successful housing programs in the world, the development should be led by state-owned companies and state ministries should act as supervisors and coordinators of the policy,” Jehansya explained.
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According to Sunardi, Corporate Director of National Public Housing (Perumnas), the company has begun to develop a new city in Maja, Tangerang, Banten together with a Chinese-based state-owned company Metallurgical Corporation of China Limited, as a consortium.
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Sunardi added that in the consortium, Perumnas obtained Rp 1 trillion to develop a residential project on a 160 hectare land. This is expected to be completed in two years. “Another project for this year is the development of 20 thousand housing units throughout Indonesia,” he said. (*)

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