TEMPO.CO, Jakarta - Lippo Group director John Riady has said he supported the program of zero down payment on a house proposed by Jakarta governor and deputy governor-elect Anies Baswedan and Sandiaga Uno.
He has lauded the program as it would help increase home ownerships. “I believe that it would be better if more Indonesians own their own homes. A house is an asset and an asset will empower the person. The aim is very laudable and must be supported,” John Riady said after the event titled Indonesia Summit Back on Track at Shangri-La Hotel in Central Jakarta, on Thursday, April 20, 2017.
John said that he is very interested in cooperating with the Anies-Sandi administration to realize the program. He reasoned that Lippo Group is vastly experienced in developing property industry, which includes housing, shopping malls, apartments and real estates.
“Maybe in the next few days, we will meet to congratulate them and ask for an input on how we can cooperate. [Lippo is] interested. Any program that can improve people’s purchasing power is very good in our opinion, and we will support it,” he said.
John added that it is possible to buy Rp350 million house in Jakarta with zero down payment. He pointed to houses and apartments in Singapore and Hong Kong with a floor area of 40 square meters, with one bathroom and a capacity of four persons.
If the cost per square meter of housing construction is around Rp3 million, a 40-meter square house will cost Rp120 million. As for the cost per square meter of housing construction of Rp4 million, the house will cost Rp160 million. “If the cost for a unit is Rp160 million and is sold around Rp300 million, it’s very possible,” he said.
According to him, Jakarta administration owns enough land to build such houses. He said that the Anies-Sandi administration must take into account two factors: land price and building price.
John said that the company may provide build the house free of charge on Jakarta government-owned land.
John added that if the program of affordable houses with zero down payment can be implemented, he suggests the Jakarta administration adopt vertical construction.
DESTRIANITA
