TEMPO.CO, Jakarta - Home Affairs Minister Tjahjo Kumolo said Thursday, August 27, that his Ministry will reeuce the cost of applying for Building Permits (IMB) by 95 percent by issuing a ministerial decree.
According to Tjahjo, the draft has been finalised and will be submitted to President Joko Widodo to be approved.
"The main obstacle to homeownership for those within the lower-to-middle income bracket is that IMBs are costly - as such, I believe a cut of 95 percent in permit costs could greatly benefit these individuals," said Tjahjo at the Indonesian Christian University (UKI) on Thursday.
Tjahjo also said that he is confident that President Joko Widodo will approve of the draft, because the entire proposal is aimed to provide ease for the public at large.
In addition to cuts to costs, the Home Affairs Ministry will also simplify the administrative process for permits relating to the construction of public housings. "The construction must go on - sometimes, the budget is available, investors and contractors are ready, but permit issuance remains an issue," he said.
Fact of the matter is, continued Tjahjo, a project could face up to a year of delays, simply because the appropriate permits were not issued in time. "There has been cases relating to the construction of public utilities - even a power plant - that have had to be delayed due to the late granting of permits, which could take as long as 1,5 years," he said.