Property Developers Complain Lack of Regional Government Support

TEMPO.CO, Jakarta - Junaidi Abdillah, Chairman of the Indonesian Housing and Residential Developer Association (APPRSI) said that the currently ongoing housing program for low-income people has not received proper support from regional governments.

"We have explained several issues on the housing program for low-income people, including the lack of regional government support, licensing issues, and infrastructures," Junaidi said after meeting Vice President Jusuf Kalla on Monday, March 20, 2017.

Junaidi applauded the central government for issuing policies in an effort to accelerate the housing program. However, Junaidi claimed that in reality, the program has made no significant progress because of numerous obstacles.

Junaidi said that the government's goal of implementing one-stop licensing services still cannot be achieved. "[Licensing] process still involved [many parties]," Junaidi stated.

The large numbers of required licenses and permits, according to Junaidi, has caused lengthy application process, forcing developers to wait even as long as five months. In addition, Junaidi also highlighted the lack of transparency in the regional governments.

"The regional government is covering something up, as a result, it is as if the people has not understanding on how to apply for licenses," Junaidi said.

For example, Junaidi said that the regional government often reject a site plan that has been crafully drafted by experienced architects.

"This means we have to use an inside man," Junaidi said, adding that developers often have to pay large sum of money to have their site plan approved.

Recently, the central government has issued an economic policy package on reducing the number of required licenses for developers to develop housing for low-income people from 44 licenses, to just 11 licenses. However, this policy can only be implemented with the help of regional regulations, which may regions had not yet issued.

Until today, only five regional governments have improved its licensing services, including Balikpapan, South Tangerang, Surabaya, Temanggung, and Makassar.

AMIRULLAH SUHADA