VEEP ORDERS DEVELOPMENT OF RENTED FLATS FOR WORKERS

Jakarta, March 5 (ANTARA) - Vice President Jusuf Kalla has ordered the immediate development of 350,000 units of flats in special industrial zones in the country for rent by workers.

"We met just now and decided to immediately develop special housing facility (flats) for workers in industrial zones," Vice President Jusuf Kalla said at a press conference here on Wednesday.
At the conference the vice president was flanked by manpower minister Erman Soeparno, state minister of public housing Jusuf A, the chairman of the Indonesian Chamber of Commerce and Industry, MS Hidayat and the chairman of the Association of Industrial Zones, Hendra Lesmana.
Kalla said that based on a study no less than 30 percent of workers' wages had so far gone to transportation and therefore it would be better if housing facilities were built for them.
"We ask industries that employ a lot of workers to build flats. I reported it to the president just now and he agreed with it," he said.
He said a total of 600 hectares of land in 18 industrial zones in the country had been prepared for flat building projects. He said a total of 350,000 units of flats could be built on it.
He said he was optimistic the projects could be immediately carried out as the land had been made available.
Regarding the permit he said he would soon invite governors and district heads to a meeting to discuss it.
"So the land has been made available by industrial zones. I have asked them to set aside 10 percent of their zone for flat development," he said.
Regarding their construction the vice president said it could be carried out by developers while workers' insurance company PT Jamsostek and Bank BTN could provide the funding. He said the government meanwhile would give a six percent interest subsidy.
To build 350,000 units of flats a total of Rp35 trillion would be needed in three years.
"In principle the development will be done immediately, may be in April or May. It is for the sake of industrial efficiency in Indonesia and creating employment," he said.
He said the project would be able to employ at least three million workers based upon a calculation of one unit for 10 workers.
About the rent he said it would be set at Rp100,000 a month a worker. So at least around one million workers could be accomodated there, he said.
He said the government would give a six percent interest subsidy and for this year it had provided Rp2.5 trillion for it.
The chairman of the Association of Industrial Zones, Hendra Lesmana, meanwhile said that 18 industrial zones had been ready for accomodating the project including those in Jakarta.