Developing Houses, Developing Concerns

            Moreover, whether realized or not, the existence of giant developers in Indonesia are surreptitiously causing harm to our society and the related institution (re: government) seem to do nothing to keep them away from 'tearing many lives down'. The bribery case regarding the issuance of property permits for the modern city in Bekasi Regency involving government officials divulges nefarious reality of our frail bureaucracy. 

Unclear planning permissions, tiresome administrations, and destitute law enforcement are the ones to blame. Rules intended to provide better public service in lieu of the effects of the development planning on the local area are oft dodged easily, thanks to the practice of corruption. The government, who are supposed to oversee and monitor anything done by the private sector fail to do their task. 

The presence of decentralization, introduced under the notion of 'local government know their area better', which should have been a major gain for the regional government to take advantage of and create better welfare for the people is seemingly ineffective. The bureaucracy is way too vulnerable to exploitation (re: corruption or any negative noun you'd like to put in). Our poor institution costs us really much as they act on behalf of the public but misuse their privilege as civil servant. This can't last for any longer and something has to be done.

Call for change

People cannot afford to suffer again anymore and there is a sense of urgency to strengthen our institution. So, first and foremost is to ensure that those acting on behalf of us with the people's interest in mind.  Second, the bureaucracy must be well-established, transparent, and have savoir faire so that there will be clear-defined laws and low transaction cost in sorting the problems related to large-scale development out. Therefore, a massive and structural reform is a sine qua non. 

Thereupon, we can start talking about what regulations will suit us the best. There are a handful of policies we can possibly impose, namely the vacant property tax, height restrictions, or zoning limit. Such regulations will hopefully bolster faster supply of real estate at lower prices. New initiatives should be made headway to bridge the interest of all parties concerned so that the social function of housing can be accommodated without overriding its financial aspects too much. Only by doing that we can dream of a better future for all of us.

By: Yoshua Caesar Justinus | Economics 2017 | Staff of Kanopi Studies Division