Tuesday, September 05, 2006

Low-income flats are profitable!

Indonesian real estate mogul Ciputra is willing to invest whatever it takes to build low-income flats in Jakarta. The condition: Government provides land and reduces interest rate from 15% to 10%. "Consumers cannot pay 15%," he said. Obviously, if Ciputra is interested, that means there's good business.

On another article, the Jakarta government admits that it still needs to provide 125,000 low-income flat units to accomodate those still living under the highways, along railroads, in green areas, and along the river. They are also asking private developers to keep their promise to build 1,000 units in 2006-2007. In Berlan, East Jakarta, a 20-storey flat will be build to accomodate mainly army personnel (retired and active). Hope this does NOT become a 20-story slum with "tradable" right to occupy the units.

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