President Joko Widodo announced on Tuesday 3rd September, that the government plans to sell the land of the future capital city directly to the public.
According to the president, this will be one of the sources of funding for the new capital city’s construction.
The government has reportedly prepared 180,000 hectares of land in Penajam Paser Utara regency and Kutai Kartanegara regency. About 40,000 hectares of land will be used in the first stage of development, and 10,000ha will be designated for administration offices.
“So people can own the remaining lands, it will not be through a developer, like today’s property market. I think if we sell it for Rp2million per square metre, it will not be costly. We can check the land price in the outskirt areas of Jabodetabek, it even reaches Rp5million,” the President added.
Secretary General of the Indonesian Real Estate Developers Association (REI), Paulus Totok Lusida, pointed that land management and sales must be conducted through developers before reaching the consumers to ensure a smoother process.
“If possible, the land should be offered to REI first so we can create the design, the plot, and the environment to make it ready to be developed in conditions that the government set the price. REI will support,” Paulus offered. However, he expressed that the president’s decision to keep the land prices at Rp2million per square metre is pretty affordable for the public.
Source: Bisnis.com
Image: The Straits Times