Close, Comfortable, Cheap in Jakarta.... Don't Hope!

October 4, 2019

To this day, Jakarta with all its challenges is still the number one destination for workers in Indonesia. Despite having to live with traffic jams and pollution, Jakarta remains attractive to the labor force. The rapid turnover of the economy and the spread of information make life in Jakarta look very tempting.

One of the biggest challenges for the new workforce if they want to pursue a career and settle in Jakarta is housing. Ideally, all workers should be able to find a comfortable and affordable place to live, which is a key asset for growth. However, the high cost of living in Jakarta makes housing options increasingly limited. In fact, housing is a basic need that determines the quality of one's life. Looking for an ideal place in all aspects, such as close proximity, good location and low cost is like looking for a needle in a haystack.

Finally, like it or not, workers usually compromise on what kind of housing they can get.

Cheap and Close, but Not Comfortable

"Incidentally, I am not a native of Jakarta, aka an overseas child. I work in the Sudirman area and chose to live behind the office. Fortunately, apart from the office, my work requires me to do more activities outside, such as photoshoots from one location to another. So, even though it's small, my current boarding house is enough for me to just live and rest." - Furqon, 27, photographer.

Furqon's choice is shared by many new workers. With limited income and no urgent need for space, the best option is to rent a room in the city. Prices vary but are usually still affordable. In Jakarta, you can still find a room for Rp 400,000 per month, usually a cramped space with minimal lighting and other facilities located in a narrow alley or for Rp 1-2 million per month for a standard one-person room with an en suite bathroom in a nice neighborhood. These prices depend on the area chosen and the facilities provided. The amount is obviously significant when compared to the salaries of the new workforce of 20-24 year olds who are on average equal to or even below the regional minimum wage, which is currently IDR 3.9 million.

The advantage of this option is that it is close to the workplace so you can save on transportation costs and time. The disadvantage is that the place is cramped and limited, which is not a good choice when you are married.

Close and Convenient, but Not Cheap

"I live in the Tebet area and ride my motorbike to work every day in the Blok M area. Because monthly expenses are already expensive, in addition to saving money I try to maximize all the facilities in the apartment, such as the gym and swimming pool. Anyway, the money I spend on housing has to be worth it." - Cikal, 27 years old, private employee.

This is a principle commonly held by residents of apartments like Cikal. Obviously, the rental fee for middle and upper-middle class studio apartments can range from Rp 4 million to 10 million per month. Not to mention the cost of environmental management fees (IPL), electricity, and water that must be added. Cikal himself has to spend Rp 500,000 for IPL and around Rp 400,000 for electricity and water every month. This does not include the monthly parking rental fee.

Cikal is one of the few people who have the flexibility to spend more to choose a residence in the city center and close to his workplace. This kind of residence is actually ideal for new workers because they don't need a lot of space. Unfortunately, the price range is clearly more expensive and can only be enjoyed by the upper middle class. Apart from the already expensive rent, the lifestyle of the surrounding neighborhood is also expensive. Places like this are usually far from traditional markets and public transportation.

Convenient and Cheap, but Not Close

It's a different story for those who are willing to live far from the city center as long as they can still work in Jakarta. With lower costs, a comfortable home can be obtained. This is arguably the most popular choice nowadays, especially among new families.

"In a day, I can spend 2.5 hours on the road to commute from my home in Cilebut, Bogor, to my workplace in Mangga Besar, West Jakarta. It's tiring, especially when the mode of transportation is limited. But I think this option is still better because I can save money for other needs." - Alfi, 22 years old, private employee.

Jakarta workers who live in suburban areas like Alfi are increasing in number. No wonder the Bodetabek area is becoming more and more populated. Limited transportation also makes it difficult to access these areas to downtown Jakarta. This choice actually has many risks, especially health. Long commutes and traffic jams are bad for the traveler and for the environment. But, of course, for some people, it's a small price to pay for a plot of land with a small garden in front of it.

Relax, there's always an option!

If we can fantasize, of course we want this unrest to disappear. If landed houses can no longer be realized, it would be wonderful if vertical housing such as apartments or flats were more widely available at affordable prices. Not only that, the existing transportation facilities and modes must also support connectivity between regions. Hopefully, the distances and trips that must be taken every day are not too burdensome. Instead, it will help increase our productivity and creativity.

The trilemma of choosing the criteria for residential location in Jakarta may never end. However, we must believe that appropriate policies will be able to reduce the risks of each choice. The solution to every problem in this city is our responsibility; all stakeholders from the government, developers, to the citizens. Although the road to an ideal city is still far and long, by taking an active role in providing input to the government we will help realize a more friendly and comfortable Jakarta, not just for work.

Please visit our Instagram account @jakartapropertyinstitute for more information on Jakarta's livable development and email info@jpi.or.id for ideas.

|

Publications

Office building conversion to residential: a comparison of several countries' mechanisms
Market Reform City Reform
BUMD Land, an Alternative that Addresses the Housing Emergency
It all started with licensing
Photo essay - Jakarta Residents
Proposed Improvements to Building Licensing in Jakarta
Glossary
The Potential of Fulfilling Middle Class Residential Needs through Co-residence

Blog/opinion

Jakarta as a Global City
Congestion Solution in Jakarta: Integration of BRT, LRT, and MRT
How to Take the KRL to Lebak Bulus from Various Directions in Jabodetabek
Housing Career in Jakarta: Definition and Barriers
Understanding the Pros and Cons of 35-Year Mortgage Schemes
New name for Transjakarta bus stops in 2024
Vertical Housing: Pros of Living in Vertical Housing
Jakarta City Park: Access and How to Get to Jakarta's Most Popular City Park
Weekend Spots in Jakarta: Revisiting the JPI 2021 Survey
Parks for Picnic in Jakarta: A Peek at the New Faces of TMII and TIM
How can Jakarta workers stay in Jakarta?
Understanding the Difference between Dense and Overcrowded Cities: Which one is Jakarta?
Bundaran HI Transjakarta bus stop: Tips for Taking Photos at Jakarta's Favorite Spot
Mixed-Use Building: Understanding the Benefits of Mixed-Use Concepts in Jakarta's Development
Jakarta's Changing Development Pattern from Car-Oriented to Pedestrian-Oriented City
Public Transportation in Jakarta and Pedestrian Concept Development 2023
How to get to TMII by KRL Commuterline and TransJakarta
Jakarta Transportation Integration and its Benefits for Citizens
RDTR 2022 and Rules for Flat Residents
Example of a Certificate of Good Function (SLF) and its Definition and Usefulness
Detailed Spatial Plan: Transforming Jakarta by Changing Building Intensity
Definition and Function of Green Open Space (RTH) and Its Procurement in Jakarta
Addressing Jakarta's Green Space Shortage by Consolidating Private Green Areas
Building Floor Coefficient (KLB), an Important Factor to Address Jakarta's Housing Emergency
Market Approach to Accelerate the Implementation of Flat Development Obligation
Arranging Senopati, a Mix of Cultural Heritage Area and Vibrant Culinary Center
Housing Provision in Jakarta Needs Holistic Policy
Not Only Construction, Financial Policy is Crucial for Provision of Owned Housing
Four Things Jakarta Should Consider Regarding Housing Policy
Mixed-Use Residential Development, New Potential for Cities
5 Housing Policies in Singapore that Can Be an Inspiration for Jakarta
Overcrowding, which one to avoid?
Apa itu SHM (rumah milik)
What is SHM: Definition, Advantages, and Disadvantages of Ownership Certificates
Cities Won't Die from COVID-19, Here's Why
Collaborative Problem Solving to Accelerate Construction Permit
Why does Jakarta lack public parks? | Frequently Asked Questions
Land Consolidation | Frequently Asked Questions
With No Guests to Serve, Insecure Hospitality Staff Face Layoffs
Residential in Jakarta - Frequently Asked Questions (Video)
Here's how good it is to live in an apartment
Spatial Breakthroughs Key to Economic Revival, Housing Fulfillment
Realizing Subsidized Apartments Through Public-Private Collaboration
PBB Relief: A Lifeline for Retail, Hotel and Restaurant Workers
The Urgency of Extending the HGB Period
Interview with Noerzaman, Architect of JPO GBK (Video)
How to make walking in Jakarta more fun (Video)
The causes of expensive housing in Jakarta
The Property Sector and its Impact on the Economy
Definition of Transit Oriented Development (TOD) and its Application in Jakarta
Parking Problems in Jakarta | Frequently Asked Questions
What is Developer Liability? | Frequently Asked Questions
Can We Live in the Middle of Jakarta? Frequently Asked Questions
Guarding the Sustainability of the Jakarta MRT
The Fate of Preventing the Spread of the COVID-19 Virus is in Our Hands
6 Key Findings from Millennials' Residential Survey
Ojol Dependency, Solution or Problem?
Developing Healthy Buildings in Jakarta, One Step at a Time
The Forgotten Middle Class
Too Dense, an Excuse for Inaction!
Rumah Tapak is no longer ideal
Flats above Markets, New Potential for Cities
A More Competitive Jakarta (Video)
The Joys and Sorrows of Living Close to Work in Jakarta
BUMD Land, an Alternative that Addresses the Housing Emergency
Close, Comfortable, Cheap in Jakarta.... Don't Hope!
Fighting traffic jams through dense housing (Video)
Let's Build Jakarta Up (Video)
5 Benefits of Transforming into a Compact City
For Affordable Housing & Green Space, Jakarta Must Build Up!
Want a smoother Sudirman-Thamrin? Let's Change the Parking Policy (Video)
Has Jakarta's transportation infrastructure favored women?
Could Jakarta's MRT be superior to Singapore's?
Getting around the MRT's lack of subsidies
Business Activities Halted: What the Government Can Do to Help
Improving Ease of Doing Business Ranking with RDTR Improvement
Public Space Procurement Innovation as a Form of Design Investigation
Realizing Jakarta as a Collaborative City
9 Important Things About the Certificate of Functioning (SLF)
Private Contribution in Building Jakarta's Pedestrians
Developer Constraints in Processing SLF
Certificate of Fitness to Function: For Whom?
The Need for Revision of Building Safety Regulations against Fire Hazards
Private Sector Helps Jakarta Provincial Government Overcome Housing Backlog
Business Activities Stopped: What the Government Can Do to Help
Land Consolidation as Housing-for-All Solution in Jakarta
Jakarta's Middle Class Housing Problems and Solutions
Beli atau Sewa Rumah: Kelebihan dan Kekurangan Rumah Sewa
Buy or Rent A House: Advantages and Disadvantages of Renting Homes
Jakarta sebagai Kota Konser
Jakarta as a Concert City: Definition and Inhibiting Factors for Jakarta to become a Concert City.
View More

News releases

DKI Prepares Space Utilization Regulations to Face the Challenges of the Covid-19 Pandemic
Jakarta Vertical, Jakarta Affordable
How to Reduce Congestion in Jakarta, Government Can Implement Solutions
Benefits, Requirements, and How to Apply for FLPP Subsidized Mortgage
Are millennials interested in vertical housing?
Office and Home Combination, Workplace Options After the Pandemic
Cooperation: The Key to Public Transportation Safety in the New Normal
Realizing Affordable Housing in the Middle of the City
RPTRA Borobudur
JPI Discussion: Drafting Process and Conflicting Regulations are the Main Obstacles
Singapore's Center for Liveable Cities Provides Training for DKI Jakarta BPTSP
JPI Encourages Government to Fix Building Permit Rules
Carlo Ratti: Innovation and Technology to Meet Urban Challenges
No Licensing Innovation, DKI Jakarta Drops to Fourth Place for Ease of Doing Business in Indonesia
DKI Jakarta Visited CLC in Singapore
JPI Initiates "Ciliwung Punya Kita" Run
JPI Helps Facilitate the Preparation of Jakarta Minimum Infrastructure Rapergub for Sustainable Jakarta
Citizen-Friendly Development Scheme
Property Sector Prepares for The New Normal After Covid-19 Pandemic
Recovering the Economy, DKI Jakarta Expedites Building Permits to 57 Days from 360 Days
Rusunawa: A Closer Look at Affordable Housing Options in Jakarta
Jakarta's Middle Class Housing Problems and Solutions
MRT Jakarta Develops TOD Area, Here are the Locations
The Period of Validity of Building Rights (HGB) and the Procedures and Conditions for its Extension
Building Permit (IMB): Understanding the Definition, Requirements, and Benefits of IMB
JPI Collaborates with Professional Associations to Draft City Planning Policy brief
Current Condition of the Provision of Simple Flats in Jakarta
Potential for Providing Housing in Jakarta Through Co-residence
View More
Copyright © Jakarta Property Institute