INDONESIA’S HOUSING POLICY AND DEVELOPMENT

ORGANIZATION STRUCTURE OF KIMPRASWIL

MINISTER

CONSTRUCTION & INVESTMENT

SPATIALPLANNING

RESEARCH &DEVELOPMENT

HUMAN RESOURCESDEVELOPMENT

SECRETARIATEGENERAL

INSPECTORATE GENERAL

STAFF EXPERTS

REGIONALINFRASTRUCTURE

HOUSING &SETTLEMENTS

RURAL & URBANDEVELOPMENT

WATER RESOURCESDEVELOPMENT

FUNCTIONAL STAFF

POPULATION OF INDONESIA 1961-2000

URBAN RURAL TOTALYEAR

1990

1980

2000

1971

1961 14.6

20.6

32.9

55.1

78.3

82.1

98.6

114.2

123.1

128.2

97.5

119.2

147.1

178.2

206.5

IN MILLION

SOCIAL-ECONOMIC INDICATORS (2000)

INDICATOR 2000

LIFE EXPECTANCYINFANT MORTALITYPEOPLE UNDER POVERTY LINEPOPULATION GROWTH RATEINCOME PER CAPITAECONOMIC GROWTH

65 YEARS

50/1.OOO LIFE BIRTHS

49 MILLION

< 2%< US$ 100< 1%

INDONESIA CHARACTERISTICS OF HOUSING DELIVERY SYSTEM

INFORMAL FORMALTOTAL MARKET SHAREROLE OF GOVT

CREDIT MECHANISM

HOUSING CONDITION

HOUSE TENURELAND TENUREHOUSE STRUCTUREQUALITYINFRASTRUCTURE QLTYINCOME LEVEL SERVED

< 80%NO DIRECT ASSISTANCE SUPPORT THRU BTN

< 20%

PERUMNAS, DEVELOIPERS

NO SUBSIDY SUBSIDIZED

MOSTLY EXPANSION & RENOVATION, SELF-FINANCED

PRODUCTION OF NEW HOUSEBY DEVELOPER

SECURE SECURE

INSECURE SECURE

VARIED WITH MUCHSUB-STANDARD

MEET OFFICIAL STANDARDS

MOST INADEQUATE ADEQUATE

PARTICULARLY LOWER INCOME MODERATE TO HIGH INCOME

HOUSING INSTITUTIONAL FRAMEWORK

MAJOR HOUSING INSTITUTIONS

•BTN (STATE SAVING BANK)•BANK INDONESIA•PERUM PERUMNAS (UHDC)•BPN (NATIONAL LAND AGENCY)•BKP4N (NATIONAL HOUSING POLICY BOARD)•DEPARTMENT OF KIMPRASWIL•REAL ESTATE INDONESIA

INDONESIA’S HOUSING SITUATION

INDICATORSFloor Area per Room (m2) 10.17Person per Room 1.28Householder per Dwelling Unit 1.14Permanent Structure 67Water Connection 66Journey to Work (minutes) 40Owner Occupancy 56

UNCHS/World Bank : Housing Indicator 1990

PROBLEMS RELATED TO HOUSINGDEVELOPMENT

•Housing Deficit > 750.000 units/year•Urbanization 4% -6% per year•Scarcity of Available Land•Financial Constraints•New Life Style•Over-Investment•High Subsidy (for formal delivery system)•Complicated Land Titling

HOUSING VISION AND MISSION

The Vision•Adequate shelter for all citizen of Indonesia in an environmentthat is healthy, safe, harmonious, and sustainable humansettlements

The Mission•Assist the people to be able to live in adequate dwelling in ahealthy, safe, harmonious and sustainable human settlementsthrough empowerment and enabling approach•Assist the people in creating culture of organic growth in thecommunity through human settlements development

PAST EXPEREINCES IN HOUSING DEVELOPMENT

•Formal delivery system supplied 20% of the total housing need

•Housing construction came to a halt at the time ofeconomic crisis

•Provision of housing (from supply side) has led tofinancial burden

HOUSING BASIC POLICY

•Priority of development is given to housing development

•Housing development takes into considerationsustainable development principle

•Human settlements is the joint responsibility(people and government)

HOUSING BASIC STRATEGY

•Enabling all stakeholders in housing development

•Creating conducive atmosphere by improving accessto key resources and development opportunities

•Decentralizing housing development to local governments

HOUSING STRATEGIC OBJECTIVES

•Providing housing assistance to under-servedpopulation

•Improving the capacity of human settlement institutions

•Improving support system for housing and humansettlements development

INDONESIA’S HOUSING ACTION PLAN(2000-2020)

•LOW COST HOUSING FINANCE

•LOW COST HOUSING AND BUILDING MATERIALS

•COMMUNITY EMPOWERMENT