House Building Target Set 600,000 Units For 2015

Tanjung Selor, N Kalimantan (Antara Bali) - Public Works and Housing Minister Basuki Hadimoeljono said he hoped 600,000 units of new houses could be built this year.

"My target is to build 600,000 units of houses this year," Basuki Hadimoeljono said after inspecting the construction of new road at Tou Lumbis in the regency of Nunukan, North Kalimantan  on Thursday.

He said until now 498,000 units of house have been built by both the government and the private sector.

"The private sector also helped build low cost houses," he added.

Earlier, Secretary General of the Ministry of Public Works and Housing Taufik Widjoyono said progress made in the implementation of the program to build one million units of houses has reached only 45 percent so far this year.

Implementation of the program  has run well as scheduled for low cost houses ,as the project is handled by the ministry itself, Taufik  said.

There was,  however, problem in the implementation for the program  to build houses for middle to  high income people, he said.

Houses for middle to high income people are to be built by the private sector.

"Under the present condition of uncertainty in the country consumers choose to restrain from buying houses," Taufik said.

The Central  Java branch of the  Real Estate Indonesia (REI) said the program  to build one million units of house launched by President Joko Widodo is not up to expectation in implementation.

"There are a number of hurdles faced by developers in carrying out the program . One is land clearing ," deputy chairman of thye East Java REI Dibya K Hidayat.

Dibya said the prices of land soared  in the city of Semarang slowing the process of land clearing.

"With the prices skyrocketing it is impossible for developers to build low cost houses in Semarang," he said, adding, "it is possible if the project is outside the city."

He called on the government to help provide infrastructure for housing projects in the regions.

"Ideally, the government builds infrastructure in new settlement centers as satellite cities," he said.

He said the government and developers have not reached a consensus on the provision of infrastructure in new housing projects.

 There are still a lot to be faced such as policies not yet synchronized between the center and the regions, he said, citing policy on processing tariff  at the land office.  (WDY)