Builder, government offer subsidized homes

The Jakarta Post, Jakarta

Developer PT Perdana Gapuraprima launched the sale Monday of apartments in two towers to be built in Kebagusan, South Jakarta, 30 percent of which will be eligible for government subsidies under the housing-for-the-poor scheme.

"There are a range of prices, starting at Rp 96 million (US$10,322)," said president director Rudy Margono, adding that some of the apartments cost more than Rp 300 million.

Thirty percent of the apartments in each tower are priced at less than Rp 144, with eligible buyers entitled to receive a down-payment grant of up to Rp 7 million from the government and an interest subsidy of up to 5 percent on installments, said Public Housing Minister Muhammad Yusuf Asy'ari during a press conference.

"The subsidy scheme is only applicable to people in the middle and lower-income brackets," said Asy'ari, referring to the relevant government regulation, which was issued in April 2007.

Under the regulation, the government provides financial help to purchasers of low-cost apartments in a bid to encourage developers to build a total of 1,000 apartment towers for middle and low-income buyers. The government has allocated Rp 50 trillion (around US$5.4 billion) to finance the three-year scheme.

According to Asy'ari, there are three groups of potential purchasers who are eligible for assistance. The first consists of those with monthly salaries of between Rp 3.5 and Rp 4.5 million, the second, those with monthly salaries of between Rp 2.5 and Rp 3.5 million, and the third, those with salaries of Rp 1.2 to Rp 2.5 million.

Members of the first group who purchase apartments costing Rp 144 million will receive a grant of Rp 5 million for the down payment, and a subsidy of 2.5 percent on the cost of installment interest over four years.

"The buyers are not allowed to resell the subsidized apartments for profit," said Asy'ari, adding that the government was still working on a monitoring mechanism.

The new apartment development, called Kebagusan City, which is located on Jl. Baung, Kebagusan Raya, South Jakarta, marks the second stage of the 1,000 low-cost apartment tower project being promoted by the government, following the sale of apartments located in 52 towers during the first-phase earlier this year.

The construction of the two new towers, which will contain some 1,600 apartments, will start next month and is due for completion by the end of 2008.

"Besides these two towers, we will build 15 others over the next five years", said Perdana Gapuraprima corporate finance director Arvin F. Iskandar. (JP/ind)