Vice President Jusuf Kalla wonders why Indonesian real estate companies are so slow in building low-income flats. FYI, last year the VP declared a national programme to build 1,000 low-income residential highrises in 10 big cities by 2009 (yeah, right..).
The Indonesian Real Estate Association answered as such: (local) governments are not providing land, and this makes it practically impossible for the private sector to supply flats in cities for the low income. Ciputra, the real estate mogul, said that any land priced over Rp 3 million (~USD 300) per square meter is not feasible to be procured by the private sector to be sold as low income flats. Furthermore, "even if the local government wants to provide land, there are many regulations that discourage it," someone from DPR said.
I guess we won't be seeing 1,000 low-income flats in the near future..