The Imbalanced Superblocks

 KOMPAS.com - Most major developers have at least one superblock project, while on the other hand moderate housing for the middle to lower classes is suffering a huge deficit. Won't there be an imbalance or an oversupply of superblocks?

James Riady, CEO of Lippo Group and vice chairman of the Indonesian Chamber of Commerce and Industry for property, explains that, "With the economic growth projected at 5-6 percent per year within the next 20-30 years, there will be a tremendous demand (for superblocks)."

James stated that in time our economy will enter the consumption stage, and when that happens the demand for superblocks will grow rapidly. "So actually the current capacity is a big minus. We have to look forward to five years ahead."

He opines that all Asian cities are going through the process of development into a metropolis, where sufficient infrastructure is the target of all house buyers. "Therefore, a superblock presents a concept where infrastructure is the main investment. There's no other way, development is going toward superblocks with sufficient world standard infrastructures." Ideally a superblock is a one stop living environment, complete with schools, hospitals, and recreational places.

"We see that there's plenty of land, but property with sufficient infrastructure is still very limited."

Currently Lippo group is developing Kemang Village and St. Moritz; Ciputra is developing Ciputra World; and Agung Podomoro is developing Kuningan City and Central Park.

Moderate residences

While superblocks give a very sophisticated impression, but what about moderate residences? James Riady also realizes that for the middle to lower societies there is a housing defisit between 6 to 8 million. "This is a fantastically huge deficit."

James urges all the political and social elites and also the government to realize that we all need to make a difference. We need policies and measures to be agreed and executed within the next five years to provide housing for the people. James also opines that the responsibility should be put on all companies.

"All business units need manpower and employees. It (housing) can't be burdened on property developers, the chamber of commerce or even REI (The Indonesian real estate association). It's impossible. How can 50 developers be responsible for a 6 to 8 million housing deficit?"

He illustrated, if a company has 100 employees, then ideally it's responsible to provide 100 houses. For example, in Singapore, a company must determine a certain portion of their employees' salaries, between 5 to 20 percent, to be contributed into a housing provision system.

As for the government, James explained that in Singapore, China, or the US, there must be a process, an institution, and funding for housing. The banking must also provide long term fungding for housing. "So we must have a dream that in the next 5 to 20 years, each Indonesian must have one house."

He also reminds that house-ownership is not just a luxury, but it's also a capital formation, which will be a national capital. "If most of our people have houses, then the national capital fund can be directed for the nation's development, and for improving the future economy." (Robert Adhi Ksp/C17-09)