Flats above Markets, New Potential for Cities

November 27, 2019

The number of backlogs or the difference in housing shortages in Jakarta is still happening. The percentage of household housing ownership in DKI Jakarta[1]. has increased from 45.19% in 2010 to 51.09% in 2015. Although this percentage increased, the average addition of built housing of only 14,768 units per year still left a shortage of 1,276,424 units in the last data collection in 2015.

The housing shortage in Jakarta is a critical issue to address. Because if left unchecked, the population density that is not supported by the availability of housing can threaten the welfare of city residents.

One solution is the application of the mixed-use concept that has been applied in the grass market. The mixed-use concept is the use of mixed land in one building. This potential is huge because the DKI Jakarta Provincial Government has many markets managed by Perumda Pasar Jaya.

The Impact of Jakarta's Housing Backlog

The housing shortage in Jakarta affects at least the economic, health, education and environmental sectors. An affordable residential area should be well connected to the needs of its residents, for example to the workplace. Because they are not affordable, people are living further away from the capital city. As a result, the travel time and distance needed to get to and from work becomes longer and longer. Which of course also has a significant impact on Jakarta's air pollution problem. The availability of convenient public transportation from the place of residence to the workplace can have an effect on reducing road congestion and air pollution levels in Jakarta.

The difficulty of accessing affordable housing in Jakarta also reflects the difficulty of accessing education facilities and decent jobs equally. As a result, upward socio-economic mobility is difficult to mobilize. In fact, the National Housing Conference 2 study states that housing affordability is related to educational achievement[2]. The study said that high educational achievement is mostly achieved by children from families who do not spend too much or too little income on housing. This means that the housing available must be affordable.

Another impact of unaffordable housing prices is the emergence of slums in Jakarta. The slum areas scattered across Jakarta are created because people want to survive and make a living. In these areas, the quality of safety and sanitation is usually neglected. Then, there is a risk of respiratory and cardiovascular problems, as well as the spread of other infectious diseases.

To overcome the above problems, the government is expected to apply the compact city concept by promoting vertical growth by increasing the number of flats in Jakarta, especially by applying the concept of mixed-use buildings as found in Pasar Rumput Flats.

Public-Private Collaboration

Through Decree No. 540/1990 and Decree No. 640/1992, the government requires private developers to build and finance low-cost flats (RSM) for each land acquisition proposal of at least 5,000 m2 . This obligation is one of the many requirements that developers must meet to obtain a Principle Permit for Space Utilization (IPPR). To fulfill this obligation, developers need to find land that is in accordance with the requirements for the construction of low-cost flats (RSM). Unfortunately, fulfilling this obligation is still considered difficult. This is because land acquisition to realize it is not an easy matter. Even those that have been realized, usually the land obtained for the construction of low-cost flats is far from the center of city activities, for example the Marunda area.

In order to realize the harmonious development of urban areas and overcome the problem of slums in Jakarta, it is better if the government as the holder of power takes part further in the process of building low-cost flats. While the construction is carried out by developers according to their obligations, the government can play a role in providing land. For example, by utilizing idle land owned by Regional-Owned Enterprises (BUMD) and State-Owned Enterprises (BUMN) where mixed-use building concepts similar to the Pasar Rumput Flats can be applied. Such collaboration will accelerate the implementation of developer obligations and the provision of housing in Jakarta, which is increasingly needed.

Looking at Potential Land

Potential land for affordable housing here is intended as land that has the attraction of public crowds, such as terminals, stations and markets. The hope is that the construction of low-cost flats at these hotspots can formmixed-use areas to obtain optimal land use effectiveness and efficiency.

The market as one of the potential lands deserves our attention. Nowadays, many markets, instead of growing, are regressing. Admittedly, markets are no longer an inviting destination for shopping, especially for young people. In Johar Baru Market, Central Jakarta, for example, buying and selling activities are only crowded in the morning on the lower floor of the market, which is an area selling vegetables, meat, and other foodstuffs. Meanwhile, the upper floors are so quiet and only filled with a few shops such as gold shops, school supply stores, and children's toy stores. The sluggish market activity needs to be addressed with changes both in terms of design and management.

Take another example, Pasar Senen owned by PD Pasar Jaya in Central Jakarta. With a vertical building mass, it is not impossible if the lower part of the building functions as a market and the upper part is developed as a cheap flat in Central Jakarta. Thus, it is hoped that the market function can be supported by the presence of the residents of the flat and the residence can be supported by the existence of the market.

In addition, Pasar Senen is located at the intersection of five roads and is close to the meeting of at least two modes of transportation, namely trains and Transjakarta. By adding residential functions in the form of flats in Pasar Senen, transportation facilities around this location can support the concept of transit oriented development (TOD) which is now being intensively worked on. The development of areas with the concept of transit oriented development will facilitate transportation connections from one area to another.

As explained earlier, the idea of developing Pasar Senen has been more or less realized in the Pasar Rumput Flat, South Jakarta. The Pasar Rumput area, which previously only functioned as a market, is now added with vertical housing on top of the building, which offers cheap flats for residents, in one of the strategic locations in Jakarta. The Pasar Rumput flat has also been integrated with the Pasar Rumput Transjakarta bus stop. Not only that, within a radius of about one kilometer from the Pasar Rumput Flat there is Manggarai Station.

Pasar Rumput flats were built by the Ministry of Public Works and Housing. Just imagine if a similar concept was applied to many other BUMD lands with development carried out by developers. Of course, the backlog will be quickly reduced and developers will find it easier to fulfill their obligations.

Emergency of Equitable Regional Development

The example above only outlines the situation around Pasar Senen and Pasar Rumput. Of course, there are still other locations that can be considered as potential land to be processed as locations for the construction of low-cost flats (RSM). It is not enough to just decide, potential lands throughout Jakarta must receive the same amount of attention to be developed properly to increase the availability of low-cost flats in Jakarta.For this reason, there must be a proportional form of cooperation between each stakeholder.

The government as a regulator and holder of power must be able and firmly determine the direction by realizing mixed-use buildings that offer affordable housing, as is the case in the Pasar Rumput Flat.

Meanwhile, developers must be cooperative and active in making it happen. Slowly, a Jakarta that is built in a fair, friendly and comprehensive manner can become a reality, starting from fulfilling the housing needs of its citizens.

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