Private Sector Helps Jakarta Provincial Government Overcome Housing Backlog

Did you know Jakarta still lacks 300,000 residential units?

Jakarta's housing shortage is partly due to a housing backlog. The housing backlog is the gap between housing needs and availability.

This housing deficit or backlog problem is reflected in the villages, slums and illegal settlements that are increasingly mushrooming in Jakarta. In fact, these things actually make residents lose money because:

• No access to health and sanitation
• Severe lack of security
• No legal status
• No protection against fire, etc.

In addition to adversely affecting the community, these things also affect the environment and the face of the polluted city. Even in the center of Jakarta, there are still many slums behind the majestic high-rise buildings. It is undeniable that the current land use in Jakarta is still not well organized so that the housing backlog has not been resolved.

Government solutions lead to new problems

The government itself has always taken initiatives to address the housing backlog in Jakarta as well as the slum problems that have formed as a result. These initiatives can be seen in the controversial evictions in Jakarta. However, the process of resolving them has only created new problems: residents losing their jobs, difficulty in accessing education, lack of compensation, and so on.

In the end, residents prefer to return to build houses in their original place. It becomes a vicious cycle that can never be solved. The arrangement of villages and slums in Jakarta is a complicated problem. In addition to being complicated, handling it also requires large funds obtained through the APBD with complicated bureaucracy.

Looking at the above conditions, there is certainly something to be improved from the way we handle this housing backlog problem. So far, only the government and local communities have always been involved in solving the problem of housing shortages in Jakarta. In fact, there is actually another way that can be an alternative for the government, namely by inviting the private sector.

Invite private sector to solve housing backlog problem

One alternative that the government can do is to invite the private sector to get involved in solving the housing backlog problem in Jakarta. Maybe many people will think, why should the private sector bother to help solve the problem of villages and slums in Jakarta? In fact, the private sector can help find innovative solutions to solve this housing problem in Jakarta.

What many people don't realize is that urban growth has an impact on private growth. The economic growth of the city and good urban planning means economic growth for the private sector. Thus, it is the desire of the private sector to contribute to the handling of the housing backlog problem to realize a better Jakarta.

In response to the housing backlog problem in Jakarta, the private sector offers a scheme that can be applied to the concept of "Geser bukan Gusur". Actually, this concept has been promoted by the previous government and also city activists.

However, in reality, this concept is difficult to implement. There is no right formula that can support this concept so that it can provide mutual benefits for all stakeholders: the community, government, and business.

A win-win scheme that provides mutual benefits in tackling the housing backlog

Under the scheme offered by the private sector to address the housing and slum backlog in Jakarta, residents will be moved to vertical housing with apartment-like quality and located in the same area as their original residence. In addition, residents will also be given cash compensation during the transition period to new housing. Not only that, the vertical housing area will also be equipped with health, education, green space, retail, and other facilities.

This scheme can be one of the Public-Private Partnership (PPP) models. By involving the private sector, the government does not need to tackle the housing and slum backlog problem alone and can delegate some of the burden of responsibility. If executed correctly, the community will be the biggest beneficiary.