IDB Interested to Fund Housing
Tuesday, 01 August, 2006 | 17:47 WIBTempo Interactive
, Jakarta: The Islamic Development Bank (IDB) is interested and ready to participate in funding housing construction in Indonesia.
Coordinating Minister for the Economy Boediono explained that the global finance institution has actually has not yet conveyed its readiness in a concrete form.
However, the IDB has implied it.
“We are also still discussing it,” he said in Jakarta yesterday (31/7).
During a meeting last Friday, Boediono said the government asked the donor institution to focus aid on two issues, infrastructure construction funding and housing construction, especially in major cities.
Nevertheless, he acknowledged that during the meeting the government did not yet received any concrete commitment from the IDB.
“But we hope the IDB will be active and participate,” he said.
He went on to say that the IDB will fund lower class housing, such as high-rise apartments.
The IDB confirmed that it would not fund housing for the upper classes.
“It is certainly for the middle and lower classes,” said Boediono.
According to him, the government plans to build high-rise apartment near places of work.
This way, Boediono said, people’s transportation costs will be smaller.
“Up to now, people’s places of work are far from their homes. This results in very high transportation costs.”
The concept of high-rise apartment buildings is commonly found in other countries.
In such countries, high-rises apartments are usually built near places of work.