Joko Dangles Incentives for Companies’ Slum Rehabilitation Efforts

By webadmin on 07:01 pm Dec 17, 2012
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Lenny Tristia Tambun

Jakarta Governor Joko Widodo on Monday promised incentives to enterprises that put their corporate social responsibility (CSR) funding toward kampung improvement programs.

“We will consider what kind of incentives can be provided for companies that direct 100 percent of their CSR programs to improving kampung [slum] areas in Jakarta,” the governor said at City Hall.

Better known as Jokowi, he said incentives were needed to boost corporate involvement in rehabilitating slums in the capital.

Joko, however, could not say when such an incentive program would be rolled out.

“This is just the start of cooperation, and there is a need to see what kind of incentive is appropriate, such as easier permit issuance, or acceleration in the issuance of building permits,” he said.

Joko said that to make monitoring easier, the CSR incentives would be provided through a single office.

“I will prepare the mechanism, perhaps going through one office only, so that controlling will be easier,” he said.

Novizal, who heads the city’s housing and regional government buildings agency, said there were 10 companies that had already expressed plans to use CSR funds to improve slums in the city, but so far only seven had actually signed a Memorandum of Understanding with the city — Jasindo; Don Media Indonesia; Bank DKI; Pembangunan Jaya Ancol; Jakarta Propertindo; Pembangunan Sarana Jaya; and Jakarta Industrial Estate Pulogadung.

The three others that have not yet signed an MoU are Astra International, Jakarta Tourisindo and Pasar Jaya.

The kampung improvement programs, he said, will prioritize development of infrastructure such as roads, sewage systems, health facilities, spaces for social interaction, housing improvements, sanitation facilities and other public supporting facilities.

“The CSR programs for the rehabilitation of kampungs are conducted to promote more involvement from the business world. … Workshops will be aimed at providing information on the importance of CSR programs,” Novizal said.

He said the city government wanted to synergize efforts with the private sector in an effort reorganize and rehabilitate slum areas in the city.