Developers of Zero Percent DP Housing Ask for Incentives

TEMPO.CO, Jakarta - Amran Nukman, chairman of the Jakarta branch of the Indonesian Real Estate Association (REI) suggests that the Jakarta Government should provide incentives to the low-cost apartment developers that are participating in the zero percent down payment housing program.

“The zero percent down payment is not a profitable program,” said Amran yesterday, Jan. 18.

Amran explained that 21 out of 400 developers, that are members of REI Jakarta, are willing to participate in the program. They generally request for an ease of development. Considering that permit issues have always been a problem that hampered the property business.

Developers voiced their support by ratifying a collective agreement. Amran said that there must be several things to be clarified in the technical discussion that will be held between Jakarta Officials and the developers.

Read: Zero Percent Down-payment Housing Program Ready by End of 2018

One of the technical issues that must be highlighted, he said, is the location where the low-cost apartment will be built. The options are it can be built on Jakarta state-owned lands or lands owned by the developers that are close to locations of transit-oriented development (TOD).

Another element that needs to be discussed according to Amran is the down payment subsidy scheme from the Jakarta government. Developers can start constructing the physical structures of the project after both points have been discussed, which they predict will commence before the end of this year.

Linda Hairani