Jakarta (ANTARA News) - Real Estate Indonesia (REI) called on the government to simplify land holding certificates that are required by property developers.

"We demand for simplification of low-cost housing certification because it usually takes a long process before issuance," said the association`s Vice Chairman for Agrarian Affairs FX Teguh Kinarto in the Ministry of Industry here Thursday.

According to Teguh, land holding certificate process would take a maximum of two to three months, but in reality, the process takes up to two years.

"The fact is that the process is really time consuming, therefore there should be a `political will` of the government to solve this problem," he said.

The long certification process would also increase the production cost because the interest rate of housing loan also continued to increase, he said.

"If the certification process is taking too long it would create additional cost where the realization has not yet been implemented. Developers are not able to give mortgages without any clear foundation," he said.

REI also said that in the near future it will establish a task force in accelerating the certification service.

Teguh had also asked for a hearing opportunity to the Head of National Land Agency through the Minister of Industry MS Hidayat.

"We asked Minister Hidayat`s support as REI Honorary Board Chairman. We are trying to help lower-income people to purchase low-cost housing where small developers are not burdened with `high cost`," he said.(*)

Editor: Heru Purwanto
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