REPUBLIKA.CO.ID, JAKARTA -- The Public Works and Housing Ministry said implementation has fallen short of target for housing development on land clearing.

So far this year, only 667,665 units of houses were built by the government out of a target of one million units this year, Minister Basuki Hadimuljono said on Wednesday.

The number, however, was not included houses built by the private sector, the minister said, adding the Real Estate Indonesia (REI) is yet to submit report.

The 667,685 units are dominated by houses for low income people, while houses built by REI are mainly for middle to high income people.

The main stumbling block slowing implementation of housing projects has been land clearing, therefore, we seek cooperation with the state-owned housing developer Perumnas, state lender Bank Tabungan Negera (BTN) and district administrations, Basuki said.

He said including houses built by REI , the number of units built so far this year was estimated to be more than 800,000 units , still not up to target.

He said development of low cost houses in the region is not decided by the central government, but based on request from the regional administrations as the number to be built would depend much on the availability of land.

Director General for House Provision Syarif Burhanudin said realization of the house development program included 353,120 units of new houses and repair of damaged houses or a total of 429,875 units for low income people.

The ministry also built 237,793 units of higher income people bringing the total to 667,668 units.

Syarif said the one million units of house in the program are not only ones to be sold but also for rent.

Based on data from BTN , credits for middle class low cost houses increased but credits for middle to high class houses declined.

"The decline in credits for middle to high class houses was attributable to a decline in investment in the property sector," he said.

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