INDONESIA ECONOMIC FORUM presents:

Government to allow residents to buy low-cost apartments

December 08, 2017

Workers construct low-cost apartments in Marunda, North Jakarta, on Dec. 23, 2016. (Antara/Wahyu Putro A)

The Public Works and Housing Ministry’s apartment affairs director, Kuswardono, has said his office is now preparing a government regulation (PP) to allow residents to buy subsidized low-cost apartments, which are currently only available to rent.

“One of the articles in the regulation will allow individuals to directly buy the apartments,” Kuswardono said in Jakarta on Tuesday as reported bykontan.co.id., adding that the regulation was derivative of the 2011 law on the apartments.

Under the regulation draft, the ownership certificates will only be valid for the physical structure of the building (SKBG).

The official said the Public Works and Housing Ministry would also issue a supporting regulation to further explain the purchase procedures and the ownership status of the low-cost apartments, he said, adding that there were 500 towers of low-cost apartments, which were ready for sale.

The apartments will be available for purchase through credit by using the House Financing Liquidity Facility (FLPP), he said.

Meanwhile, the regional administrations would be tasked with selecting potential purchasers, who could afford the loan repayments, while still being in the low-income category, he said, adding that other low-income households would still be allowed to rent their apartments.

Kuswardono said the draft regulation would also regulate the requirement for regional governments to carry out maintenance of the low-cost apartments.

The Public Works and Housing Ministry’s Housing Director General Khalawi Abdul said the draft had been sent to the State Secretariat. “We need another meeting before conveying the draft to the President,” he added. (bbn)

The Jakarta Post