[SitusKotaTua] Development of Leased Highrise Flats in the Old Town Area

[Imam Sumarlin]

Source: Kompas, Tuesday, October 10, 2006.  RB Taufik Ismail (translated by aryo)  The Governor of Jakarta has already proclaimed the revitalization program for Jakarta’s Old Town many times, but various problems and other priorities have taken precedent over the program. With the relaunching of efforts to enliven the old town under the leadership of Governor Sutiyoso, the community hoped that it would not become just promises all over again.  One of the important aspects that must be improved in the Jakarta Old Town region is the infrastructure, as revitalization needs good infrastructure, organized neatly and reliably.  One of the factors supporting the revitalization of an old town is the presence of the inhabitants who settle and are active in the area. One way for Jakarta Old Town revitalization to succeed is to increase the inhabitants, especially those who are still working in the location.  But for the Old
 Jakarta region, the middle and middle-to-low class inhabitants would be more suitable for accomodation. Due to the limitations that exist, high-rise flats (rumah susun) would be very fitting.  There are two types of high-rise flats, those that are sold and those that are leased. The middle-to-low class being the most marketable target for these flats in the Jakarta Old Town area, simple leased flats (rumah susun sewa) would be most appropriate.  One of the main obstacles faced is the very limited availibilty of land. However, if all stakeholders thought more creatively, leased high-rise flats in the old town area could certainly be realized. Several landplots like on Jalan Teh, Jalan Kunir and the surrounding area are currently old warehouses (gudang tempo doeloe), mostly unused.  Those locations could definitely be revamped and could be used as foundations for leased high-rise flats. To the writer’s knowledge, apart from being owned by
 personal and private companies, there is also land that is still owned by the government, for example PT PPA, which is owned by BUMN.  Now it is left to the political will of governments such as the local regional government and the BUMN ministry to use leased high-rise flats as not only a money-making vehicle, but also as a form of awareness towards environmental and community interests.  Available land would not be sold, but instead would be developed as leased high-rise flats and managed by professional bodies. After 15 to 20 years, these flats could be returned to their respective owners.  Seventy percent of the urban area population consists of residents with low income or income less than Rp 1.5 million per month. Assuming the rent costs would use up approximately 30 percent of their monthly income, a maximum of Rp 450,000 per the month could be used to pay rent for the flats, water, and electricity.  These kinds of
 problems could not be solved by creating simple healthy houses (rumah sederhana sehat) located one to two hours away, by public transportion, from the workplace.  Leased high-rise flats managed professionally and firmly can fill the requirements for a habitable dwelling for the middle-low class community and can also increase the rhythm of life in the Jakarta Old Town region.  Higher morning and night time activities than currently exist could be ascertained. In the morning, occupants of the flats, with their various professions, can go to work energetically with relatively low costs, as by that time there would be a transjakarta bus stop in front of the Beos station. Other modes of transportation, from the bicycle taxi bike to the city bus, are also ready to bring them to their destinations.  The same would apply to night time activities as well, making the region more lively and vibrant because before coming home to the flats, occupants
 could find something to eat outside or do other activities. Of course, economic activity in the region would definitely increase.  In the long run this region will pull other investors who want to enter the Jakarta Old Town area and help the region become a comfortable place to visit and inhabit.  RB Taufik IsmailBachelor of Business-Property, University of South Australi     More article about Jakarta Old Town at http://www.articlexpose.com    

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