Govt issues 13th policy package

August 24, 2016, 07.07 PM | Source: Antara
Govt issues 13th policy package


JAKARTA. The government released its 13th economic policy package on Wednesday, set to provide affordable housing for low-income people with simplified procedures.

Coordinating Economic Minister Darmin Nasution said only 78,7% of families in the country owned their own home, including 31 million families who owned more than one house. Ironically, 11,8 million families did not own housing and were likely to be tenants for the rest of their lives.

“Meanwhile, developers are reluctant to build affordable housing complexes, thus the government must make a breakthrough to provide housing for low-income people in residential complexes each measuring 5 hectares,” he said at a press conference in Jakarta.

Currently, developers must apply for 33 permits before starting work on such projects. The permits take 769 to 981 days to obtain, which leads to high costs. “Thus, we will simplify procedures to lower the cost and boost the business climate for (building) affordable houses,” Darmin said.

The government is drafting a regulation that will be submitted to the President for approval. The new regulation will cancel unnecessary permits and recommend the building of housing for low-income people.

“We will deregulate the 33 permits, reducing the requirement to 11 permits. The 981-day processing time will be reduced to 44 days,” Darmin said. (Ayomi Amindoni & Arif Gunawan S)

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