Affordable Apartment Housing Ownership (Rumah Susun Sederhana Milik / RUSUNAMI) has been added to the Government’s Medium Term Development Plan (Rencana Pembangunan Jangka Menengah/ RPJM) of 2004 – 2009 to anticipate the increasing demand for housing among civil servants. It is important to remember that this is a part of a much broader low to medium income apartment housing initiative from the government. Nevertheless, the preliminary focus appears to be on generating interest in the low cost market for civil service housing.

The Review Agency for Housing Savings – Civil Servants (Badan Pertimbangan Tabungan Perumahan – Pegawai Negeri Sipil / Bapertarum-PNS) has started the incentive ball rolling with the provision of Soft Loans for Construction at around 70% of the construction value. In addition, maximum interest rates have been set at 10% (effective) and provide for a 12-month installment period.

An interested real estate developer must submit their loan proposal directly to the relevant banks. Once there is an agreement between the developer and the bank, the loan agreement Memorandum of Understanding (MoU) will be forwarded to Bapertarum-PNS and the Minister of Public Housing. The Bapertarum-PNS has stated that they have prioritized the developers of the National Urban Development Corporation (Perusahaan Umum Pembangunan Perumahan Nasional / PERUMNAS) and members of the Indonesian Real Estate Developers Association (Real Estate Indonesia / REI) or affordable Housing Developers Association (Asosiasi Pengembang Rumah Sederhana/Sangat Sederhana Indonesia / APERSI) for participation in this initiative.

Source: www.hukumonline.com, ILB 1/2/2008: Affordable Low Cost Apartment Housing- An Open Invitation to Developers