TEMPO.CO, Jakarta - Savills Head of Research and Consulting Director, Anton Sitorus, stated that the flagship program proposed by the upcoming Governor and Deputy Governor of Jakarta, Anies Baswedan and Sandiaga Uno regarding the zero percent housing loan down payment will be difficult to realize.

“Banks will be reluctant in handing the loans,” he said on Thursday, April 21, 2017.

According to Anton, the Government and private sector essentially needs an initial capital to build houses.

Developers usually obtain these capitals from down payments. He suggests Anies to provide capital replacements if the governor-elect insists on continuing the proposed program.

“Based on regional budgets, Officials must also guarantee allocations for education, healthcare, and so on. Where does housing place in the list of priorities,” Anton Sitorus said.

Anton suggests for Jakarta Officials to create a form of cooperation with private sectors. It may be done by providing open lands to be managed by developers.

“Of course private sectors are seeking for profit. If developers purchase a land and are told to build an affordable apartment, the developer would take a loss in profit. There must be some form of government assistance,” Anton said.

Regarding the prices of affordable houses, Anton suggests that the installments must be set a third from the potential buyer’s total income. As for citizens with a lower income, their houses must be built in close proximity of their workplace.

The one million houses program introduced by President Jokowi provides an incentive for people with lower-income in the form of a subsidy. Such as only needing to pay one percent of the total housing loan down payment, Rp 4 million direct funding to cover the down payment, and slashing housing loan interests from 7.25 percent to 5 percent for 20 year installment.

“The program is only a differential rate of interest and down payments, where customers will pay as it normally is. It’s only meant for people with a Rp 4 million monthly income, but this has been wrongly used by questionable investors and speculators. What are the chances for the zero percent down payment program?,” Anton concluded.

DWI FEBRINA FAJRIN|SETIAWAN ADIWIJAYA