For Affordable Housing & Green Space, Jakarta Must Build Up!

June 17, 2019

Finance Minister Sri Mulyani once mentioned the issue of housing that is increasingly unaffordable for Indonesians. The high price of property means that only 20% of the wealthy can afford to buy a house in the formal market.

As much as 40% of the middle class can only own a house with the help of government subsidies. The rest cannot even afford to buy a house at all. In fact, through vertical development, Jakarta can provide affordable housing and get additional green space.

The high price of housing in Jakarta is partly due to the increasingly limited land. Jakarta is the most densely populated city in the world, on par with Tokyo, which has a ratio of 14,000 people per square kilometer. The difference is that the two cities were built in opposite ways.

Tokyo continues to build upwards, implementing vertical development in accordance with the compact city concept. The city government optimizes the potential for increasing spatial density by building tall buildings. Jakarta, on the other hand, still spreads its density horizontally with its low-rise buildings. This development erodes excessive land and leaves little space for housing and green open space.

In addition to limited land, the high cost of housing in Jakarta is also due to high land prices. As a result, the non-subsidized affordable housing built by developers - as a fulfillment of their social obligations - ends up being ineffective.

This is because cheap housing in Jakarta is in areas far from the city center. For example, in Marunda and Rorotan, North Jakarta. Indeed, the price of land in these locations is cheap, but the distance is far from the city center and transportation access is difficult. This is not attractive to low-income people who work in the city center. In fact, Jakarta as a business center certainly needs services that support the company's daily operations.

Another problem that makes housing in Jakarta expensive is the lack of visionary spatial planning. Published in 2014, the Jakarta 2030 spatial plan lacks vision and breakthroughs in land use. The plan was designed with projections of population growth and economic growth that were too conservative.

Jakarta's population is expected to increase by only 20% to 12 million from 2014 to 2030. This prediction could be true, considering that from 2000-2014 the city's population only increased by 20% from 8.4 million to 10 million.

It should be noted that during the same period, the capital's economic growth skyrocketed 187%. During that period, Jakarta grew rapidly as a business center, but residents of the capital city moved to surrounding cities such as Tangerang, Bekasi, Bogor, Depok, and others where cheap housing can still be found. This is what the projections missed.

Jakarta simply cannot continue to rely on its surrounding areas to fulfill the housing needs of its residents. This means longer distances and more tiring commutes to the capital city. It also means higher levels of congestion and air pollution in Jakarta. Not to mention, the loss of water catchment areas and agricultural land in the cities surrounding Jakarta.

Therefore, the first step is to improve urban planning. The rapid population growth is a factor that must be considered and cannot be avoided. For this reason, Jakarta must start building vertical housing as an application of the compact city concept which can be a solution to the city's problems.

The presence of the Jakarta MRT could actually be the key to more efficient land utilization in the capital city. This is reinforced by the Minister of Agrarian and Spatial Planning Regulation No. 16/2017 on Guidelines for the Development of Transit-Oriented Areas or TOD areas.

This regulation supports space densification at transit nodes. This means that Jakarta has the opportunity to utilize land around MRT, LRT, BRT and commuter train stations for vertical development.

Ideally, buildings are designed to be integrated and multipurpose for people with different income levels. That way, the positive effect is the creation of affordable housing in Jakarta that is integrated with public transportation and the presence of green open space in the area. Thus, the percentage of green open space fulfillment in Jakarta can at least show an increase.

Jakarta's city planning needs to be revised in order to adopt the ideal TOD concept as mandated by Permen No. 16/2017. This spatial revision is planned to be carried out in 2019 to accommodate additional space for affordable housing in Jakarta.

Not only improving the spatial plan, efforts to implement vertical development in the Jakarta TOD area need to be supported by subsidy policies in the form of land provision in strategic locations. Otherwise, the development of affordable housing in Jakarta will end up in unattractive locations and difficult transportation access such as Marunda and Rorotan.

The problem of strategic land availability can actually be solved if the government is willing to make a breakthrough. One of them is to cooperate with BUMN / BUMD to optimize their land assets. This is because many SOEs / BUMDs have one or two-story buildings on a fairly large area of land in Jakarta. The building can be utilized for the development of mixed-use buildings. For example, markets owned by BUMDs and terminals.

Imagine if the market buildings were raised again to make cheap flats for the underprivileged. The work can be done by developers through their social obligation program.

This method certainly benefits all parties. BUMD/BUMN gets additional revenue from optimizing the use of Building Floor Coefficient used by developers, developer obligations are fulfilled, the market is getting crowded, and the community gets cheap housing in strategic locations in Jakarta.

Once Jakarta residents start moving from conventional housing to vertical settlements in TOD areas, it is certain that there will be additional land in the capital city that can be used as green open space. There is only 10% green open space in Jakarta, far below the Jakarta Spatial Plan target of 30%.

Improved spatial planning and vertical residential development in TOD areas results in land use efficiency, affordable housing, and increases the percentage of green open space in Jakarta. Let's build upwards!

|

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?
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
View More

News releases

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
DKI Prepares Space Utilization Regulations to Face the Challenges of the Covid-19 Pandemic
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