Property Experts Ask for Concrete Measures Supporting Moratorium Appeal

By Annisa Margrit

Thursday, 08 09 2011

JAKARTA (IFT) – Property observers said that the the National Development Planning Agency's appeal for temporary stoppage of mall and apartment development in Jakarta should be heeded. However, the appeal must be followed by concrete measures from the DKI Jakarta Provincial Government.
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“The appeal is a good measure. However, appeals on mall and apartment moratoriums are not enough since it needs concrete measures, especially from the regional government,” said Jehansyah Siregar, property and settlement observer from the Institut Teknologi Bandung.
Max Hasudungan Pohan, Deputy of the Regional Development and Regional Autonomy of the National Development Planning Agency, asked for the temporary stoppage of mall and apartment construction in Jakarta to slow down rapid urbanization. According to Max, the moratorium can be done by not granting new licenses for new shopping center developments in Jakarta. According to him, the development which  centers in Jakarta has caused the rise of commuters who work in Jakarta but do not live there, thereby causing heavy traffic in the country’s capital.
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“DKI Jakarta's regional government is expected to temporarily stop development of malls and apartments within three to five years, to plan infrastructure,” he said.  He also said that the government should encourage foreign investments in infrastructure outside Jakarta and Java. "It will reduce the rate of urbanization. Political will must be exercised in developing regions, meanwhile, the central government must act to boost development in other areas,”  Max said.
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According to Jehansyah, the DKI Jakarta regional government should respond by managing the region. “The regional government should provide land and decide on the master plan for the development of that region,” he said. The Senayan area could be set as an example of development. “There are shopping centers, office buildings, residential areas and green open spaces which are all integrated,” he said. The agency’s appeal should be used to reevaluate and reorganize the overall master plan of Jakarta, Jehansyah said.
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Furthermore, he requested for the moratorium not to be hurried since it could directly affect the property industry. “If it is rushed, it might hamper the economy in general. So, it needs to be implemented wisely,” he added. Last month, the DKI Jakarta regional government temporarily stopped the granting of licenses to new shopping center developments of more than 5,000 square meters until 2012. Fauzi Bowo, Governor of DKI Jakarta, said that the moratorium will be reassessed. (*)

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