Developers in Pekanbaru Shouts, SVTO Up 700%

Housing-Estate.com, Jakarta – The property entrepreneurs, especially the lower middle home developers face complex problems. They are constrained by the high price of land to be built low-cost housing or subsidized housing whose price is determined by the government. Expensiveness was first due to its market price is such that, for example, or a strategic location near the facility; second, because of government policy. In Pekanbaru, Riau, land prices skyrocket because of the regulations.

Cheap houses in Pekanbaru

“Local governments raising SVTO (Tax Object Sale Value) of 50 thousand / m2 to 350 thousand / m2, it rose 700 percent, some even increase up to a thousand percent, “said Frans, delegates at the National Conference Riau DPD REI Real Estate Indonesia (REI) to 15 in Jakarta, Tuesday (29/11).

Frans said the policy turn off the corporate world especially the lower middle house developers. When the high land price as it was no longer possible to built subsidized housing. Though the central government encourages developers to build low-cost housing for the low-income communities (MBR) via the housing construction programs.

Secretary Director General of Administrative Territorial Ministry of Home Affairs (MOHA) Endang Try Setyasih, the informant in Munas REI admit still plenty of Regional Regulation (Perda) problematic and not pro-business. That is because the desire of local governments to raise local revenue (PAD). “We have canceled the 3000 regulation is problematic and there are laws that are not pro-business. Therefore, we need input from the community and will continue to do research on other legislation that is problematic, “he said.

Problem legislation problematic especially in the field of licensing serious attention of the Ministry of Internal Affairs as it relates to economic development. He asserted that Indonesia is not possible to accelerate the development and invited investors when the licensing complicated and there is no certainty. For this matter has left Indonesia from Vietnam and Laos. The problem is, decentralization of central government are not free to apply the policy to the region. “If there is a local government whose policies are not in line with the spirit of change is not Aada sanctions, the central government can only give terguran,” he added.

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