Property Sector Prepares for The New Normal After Covid-19 Pandemic

JAKARTA - Executive Director of the Jakarta Property Institute (JPI) Wendy Haryanto said a number of adaptations will be made by property businesses as a result of the spread of Covid-19. "The property sector really needs a quick response," said Wendy in the JPI-School of Business and Management ITB collaboration webinar How Will We Shop and Work? on Friday, May 15, 2020.

In the short term, Wendy explained, business actors will apply for debt restructuring and interest on loans to banks. From the government, they will apply for tax relief. This step is taken to maintain business sustainability.

On the operational side, Wendy said a form of adaptation in the form of implementing more flexible building operating hours is also needed. The goal is to prevent too many people from gathering in a limited time and at the same time.

In the long run, according to Wendy, there will be an increasing need for automation systems to reduce physical touch and digital communication in companies. This is because people are used to working during the pandemic. "The follow-up effect is likely to be reduced demand for office space," she said.

From the retail side, said Wendy, additional logistics warehouse expansion needs will occur compared to the additional number of stores. This is because visits to stores will still be limited for at least the next three months. In addition, the increase in warehouse needs is directly proportional to the increase in online shopping.

Raden Aswin Rahadi, Assistant Professor at the School of Business and Management at the Bandung Institute of Technology, says adaptation is essential for the property business. This is because pandemics or crises have always been an unavoidable part of human life. The Spanish Flu, SARS, and Ebola pandemics are examples. "This will be an important integral part of the business cycle," he said.

Especially for Covid-19, said Aswin, the need for the business sector to adapt is getting higher. He explained that the Covid-19 pandemic is classified as a "Black Swan" phenomenon that is "Unknown Unknowns" because there is no detailed explanation of the conditions being faced. The level of uncertainty when the phenomenon occurs is very high and has critical consequences in the future. "In this case we will face "new normal" conditions after the PSBB period," said Aswin.

Director of PT Panasonic Homes Gobel Indonesia Wulang Widyatmoko said the company implemented a personal and digital marketing approach as a form of adaptation to the pandemic. Creative content such as Instagram Live and 3D Virtual Tour were created in preparation for The New Normal. "So that we can still penetrate people who mostly work from home," he said.

Another challenge, said Wulang, is the SAVASA project located in Deltamas, Cikarang, West Java. The project, which will begin handing over its first unit, has made the property company, a collaboration between Panasonic Homes in Japan and Gobel International, communicate more intensively between Jakarta and Japan. "Our challenge is for the company to run well and still follow government regulations," said Wulang.

Jones Lang LaSalle Head of Property and Asset Management Naomi Patadungan said The New Normal lifestyle will be implemented in high-rise buildings. The use of masks and body temperature checks at health posts will become standard. Not only that, physical distancing will also still apply when using elevators, toilets, queue buildings, and seating arrangements in dining areas. The number of people in meeting rooms and large gathering spaces will also be limited. "Tenants are expected to get used to online meetings and training and limit receiving outside guests for the time being," he said.

Naomi said that changes in standards and lifestyles also apply when shopping centers resume operations. Visits to shopping centers will only be to fulfill the purchase of necessary items. The window shopping activity of visitors will decrease. Visitors who come to shopping centers will also be more limited to the age of 15-45 years old to maintain health and hygiene, and maintain endurance.

Another procedure, Naomi explained, applies to display products. The store will restrict shoppers from touching the products except by using disposable gloves. Parking card collection is also expected to use an automated system. "The Shopping Center is temporarily no longer a meeting point and gathering place, until conditions return to normal," she said.

The use of shared facilities within the shopping center will also be restricted by the building manager. That's why, says Naomi, queues at lobby toilets and elevators are likely to occur. The worship area will still be disabled until there is a change in the government's policy on assembly.

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

JAKARTA - Head of the DKI Jakarta Cipta Karya, Spatial Planning and Land Agency Heru Hermawanto said the DKI Jakarta Government is preparing regulations governing the flexibility of space utilization. The regulation aims to answer the challenges of the Covid-19 pandemic on space utilization. "We have to be more flexible because the economy needs to move," Heru said, Tuesday, August 25, 2020 in a webinar entitled Space Flexibility: The Key to City Resilience.

Heru explained that the regulation, which will be in the form of a governor's regulation, allows for more mixtures of spatial designation functions. This is because the Covid-19 pandemic and changes in people's activity patterns to work from home have made the determination of space functions no longer rigid. Moreover, it functions as a trigger to drive the sluggish economy due to the Covid-19 pandemic. "The government is the facilitator of driving the economy. If the economy grows, taxes grow," Heru said.

Heru continued, the new governor's regulation will be temporary. In the process of drafting the regulation, his agency is also studying the effects of the Covid-19 pandemic on space utilization. "We will determine the status of the regulation next, whether it remains temporary or permanent," he said.

Executive Director of the Jakarta Property Institute (JPI) Wendy Haryanto appreciated the new policy from the DKI Jakarta Government. Before the Covid-19 pandemic, Wendy said that many office buildings were already empty. The number will increase if all new building construction plans are realized, and more companies implement work from home. "So the planning adjustment must start now and be accompanied by a clear legal basis," she said.

For buildings that have not yet been built, Wendy said, the adjustment can be in the form of adding residential functions and building floor coefficients in the area to be built. That way, building construction planning can still continue because the property sector has links with dozens of other businesses in the industrial and services sectors. "The relationship is of course to the economy that will move if there is development," said Wendy.

The addition of residential functions, according to Wendy, not only solves the lack of residential supply. Business centers, office areas, and residential functions in one mixed area make the city more dynamic. "The pandemic has changed people's activity patterns, making flexibility in space utilization very important," said Wendy.

In line with Wendy, Regional Leader of Planning HOK Hong Kong, Christian Aryo Bravianto, said that the current conditions encourage a reassessment of land or area development planning. One way is to encourage and provide opportunities for the transition of functions in buildings and areas, both for existing buildings or planned areas. "Adaptive land flexibility is key to maintaining sustainability in construction development and urban planning," said Aryo.

The development of cities during the pandemic, Aryo explained, faced many challenges due to the limited space for people to move. Demand needs for space and land use have also changed. Before the pandemic, demand for the development of commercial areas in the city center was very high and for satellite cities it was more focused on residential development.

The emergence of the Covid-19 pandemic and the pattern of work from home activities, according to PT Indo Internet (Indonet) President Director Djarot Subiantoro, has also made people realize that the need for information and communication technology (ICT) network infrastructure is an essential utility just like the provision of water, electricity and gas systems. To support these needs, the ICT system infrastructure that most allows high speed and stability is currently the Fiber Optic (FO) network, against other alternatives such as cellular telephone networks, radio frequencies and satellites. "The fiber optic network needed is the network scale in the city (metro) and the network into the building or housing," Djarot said.

Djarot, who is also the Chairman of the Indonesian Telematics Software Association (ASPILUKI), said that many buildings and housing estates have started to roll out fiber optic networks in cooperation with ICT service provider operators. However, with the current business model in place, some have led to control or monopolistic areas. As a result, consumers have no choice of optimal service levels in terms of backup, cost, choice, and speed.

Djarot explained that one of the best methods of providing ICT infrastructure is through collaboration or networked alliances. The trick is, buildings and housing from planning to construction have treated this ICT infrastructure as an essential utility similar to the network of water, electricity, gas systems. From the network inside the building, it is then connected to the metro network by ICT service providers outside the building or housing. "This opens up the possibility of multi-operator service provision and provides the best option for consumers," Djarot said.

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Recovering the Economy, DKI Jakarta Expedites Building Permits to 57 Days from 360 Days

The Governor of DKI Jakarta Province, Anies Baswedan, stipulated Governor Regulation No. 118/2020 on Space Utilization Permits to accelerate building permits and encourage the stretching of the property sector, as one of the sectors that has multiplier effects on economic recovery due to the COVID-19 pandemic.

"We simplify and speed up the licensing process from 360 days to 57 working days for public buildings," Assistant for Economy and Finance of the Jakarta Provincial Secretariat, Sri Haryati, said in a press conference on Monday, February 8, 2021.

Sri added, for residential buildings, it will be even faster, namely 14 working days.

He said this effort was made because the Jakarta Provincial Government believes that the property industry can boost economic recovery during the pandemic. The property sector has the ability to absorb labor on a large scale, can increase regional income, bring in investment and has long-term business characteristics.

"Therefore, we collaborate with experts and practitioners to get input. Thus, producing licensing regulations that are simpler and more effective but still with the principle of prudence," Sri said.

Sri said, in addition to being faster, this regulation will be the basis for a more concise, organized and information technology-based licensing flow.

"This effort is part of the Universal Economic Recovery Policy Package which is the direction of the Governor of DKI Jakarta Province, Anies Baswedan, so that the economy in all sectors and layers of society can revive while overcoming the COVID-19 pandemic problem," Sri added.

In 2019, the construction and real estate industry contributed to Jakarta's economy by 17.61 percent. In 2018, the property sector also absorbed 425 thousand workers in Jakarta.

The construction and real estate industries in 2019 also contributed to DKI Jakarta's Domestic Investment of 23.9 percent or equivalent to Rp 14.8 trillion. The value of Foreign Investment from the two industries was around 28.3 percent or equivalent to Rp 17.5 trillion.

Executive Director of the Jakarta Property Institute (JPI), Wendy Haryanto, appreciated the Jakarta Provincial Government's efforts to collaborate with experts and practitioners in issuing this Governor Regulation.

"The acceleration and simplification of licensing is the right form of non-financial stimulus for the property industry so that it can not only survive but also thrive during this pandemic," he said.

BPS: Jakarta in Figures 2020

Wendy added that effective licensing will have a domino effect, such as increasing foreign direct of investment (FDI) entering Jakarta and will increase Jakarta's competitiveness.

"This will also have a long-term impact in efforts to accelerate the fulfillment of affordable housing needs in Jakarta, which is also one of JPI's focuses," added Wendy.

He hopes that there will be further collaborations between the government, experts and practitioners to create more implementable regulations.

Architect Steve J Manahampi also welcomed the issuance of this Governor Regulation. "The role of licensing is vital in the construction and property services industry. It not only directly affects both industries but also the supporting supply chain such as architects and other professionals," he said.

He added that a fast, efficient and easy licensing process will have a very positive impact on architects in the planning process so that it is in accordance with the targeted time.

"I hope this Pergub will also be followed by an increase in the capacity of human resources related to licensing services. So that the breakthrough that the Governor wants can be felt down to the service counter," said Steve.

Jakarta's Middle Class Housing Problems and Solutions

The establishment of financial policies that favor the middle class in the provision of housing often goes unnoticed. The middle class in the context of this paper are those who are no longer classified as low-income earners, but are also unable to participate in the property market. In general, the middle class is affected by housing problems and requires government intervention.

The supply of housing will end up unabsorbed if there is no financial policy intervention from the government that can guarantee them access to housing. It is this financial policy that can solve the housing problem in the middle class.

The need for financial policy interventions that favor the middle class is not without reason. In Jakarta, for example. The housing problem that has not been resolved by financial policy intervention has made people leave Jakarta and buy houses outside the capital city. The choice was forced to be taken because of the high price of housing.

The condition triggered by the occupancy problem is certainly detrimental to Jakarta because of the loss of potential tax and regional revenue from middle-class shopping activities.

They work in Jakarta but spend their salaries outside the capital. The current situation in the property market due to housing problems in Jakarta can only be intervened by the government. The absence of intervention causes housing prices to become increasingly unaffordable and housing problems to worsen.

In addition, Indonesia's broad middle class is still vulnerable to returning to low-income. The World Bank states that since 2000, 10% of the middle class has returned to poverty or vulnerability; 40% have dropped to the aspiring middle class; and only 50% have stayed in the middle class.

The data further emphasizes the importance of financial policy interventions in housing provision to address housing problems, especially for the lower middle class. Such interventions can help people in this class, which accounts for 45 percent of the population or 115 million people, gain access to decent housing, and overcome this chronic housing problem.

Those in this class are free from poverty, but have not yet achieved full economic security, especially with regard to housing. For this group, moving into the middle class is as likely as slipping back into poverty.

There are at least three financial policy solutions that can be implemented to help the middle class participate in the property market so that it will be free from housing problems.

First, a financial policy that can solve the housing problem in the middle class is to reduce mortgage interest rates. Data from 2020 shows that Indonesia's mortgage interest rate is the highest in Southeast Asia at 9.98%[1]. This figure is still above Thailand's 5.34%, still higher than Malaysia's 4.24%, and far above Singapore's 2.17%.

Mortgage interest rate relief in Indonesia actually already applies to houses in the Ministry of Public Works and Public Housing's Housing Financing Liquidity Facility (FLPP) program. However, the location of FLPP program houses is usually far from the city center and has not been intended for vertical housing in the middle of the city. As a result, the program has not been effective in helping alleviate housing problems in the middle class.

The government needs to start thinking with an urban outlook and increase the number of vertical dwellings needed to overcome the high price of land in the city. This is because 56.7% of Indonesia's population will live in cities by 2020. Modeled after the success of compact cities in other countries, vertical development can be an effective solution to the housing problem in Jakarta.

Enabling people to live in the city where they work-without the two-hour commute.

Rusunawa: A Closer Look at Affordable Housing Options in Jakarta

The government has run various programs to address the problem of affordable housing supply. One of them is the zero DP flat program or the construction of rusunawa in Jakarta.

The zero DP flat program, also known as Rumah Susun Sederhana Milik (Rusunami) is provided for low-income residents of DKI Jakarta. Then, as the name implies, the supply of simple rental flats or rusunawa is intended for DKI Jakarta residents who need affordable rental housing.

So far, rusunawa have been built in 12 locations in DKI Jakarta. These twelve flats consist of 33 towers with a total of 7,421 units. Let's take a closer look at the rusunawa options in Jakarta, from each location, facilities, rental prices, to the requirements for renting a rusunawa.

Reporting from the DKI Jakarta Provincial Government website, ppid.jakarta.go.id, here are 12 rusunawa that have been inaugurated in August 2022, along with information about each flat building:

  1. Rusunawa Penjaringan (North Jakarta) which consists of four towers with 20 floors. This flat has 1,010 units consisting of 1,008 type 36 residential units and two disabled residential units.
  2. Rusunawa Karang Anyar (Central Jakarta) which consists of two towers with 16 floors. This flat has 421 units consisting of 420 type 36 residential units and one disabled residential unit.
  3. Rusunawa Cipinang Besar Utara (East Jakarta) which consists of one tower with 16 floors. This flat has 239 units consisting of 238 type 36 residential units and one disabled residential unit.
  4. Rusunawa PIK Pulogadung (East Jakarta) consists of three towers with 16 floors. This flat has 511 units consisting of 507 type 36 residential units and four disabled residential units.
  5. Rusunawa Ujung Menteng (East Jakarta) which consists of two towers with 16 floors. This flat has 422 units consisting of 420 type 36 residential units and two disabled residential units.
  6. Rusunawa Cakung Barat (East Jakarta) which consists of three towers with 16 floors. This flat has 542 units consisting of 539 type 36 residential units and three disabled residential units.
  7. Rusunawa PIK Pulogadung Phase II (East Jakarta) which consists of six towers with 16 floors. This flat has 1,412 units consisting of 511 family flat units (type 36) and 901 worker flat units (type 18). Each type provides 4 disabled dwellings.
  8. Rusunawa Pulo Jahe (East Jakarta) which consists of two towers with 24 floors. This flat has 750 units consisting of 748 type 36 residential units and two disabled residential units.
  9. Rusunawa Padat Karya (North Jakarta) which consists of two towers with 16 floors. This flat has 377 units consisting of 375 type 36 residential units and two disabled residential units.
  10. Rusunawa Kelapa Gading Timur (North Jakarta) which consists of one tower with 11 floors. This flat has 151 units consisting of 150 type 36 residential units and one disabled residential unit.
  11. Rusunawa Pulo Gebang Penggilingan (East Jakarta) which consists of three towers with 15 floors. This flat has 522 units consisting of 520 type 36 residential units and two disabled residential units.
  12. Rusunawa Daan Mogot, West Jakarta, consists of four towers with 16 floors. This flat has 1,062 units and two disabled housing units.

Then, what are the requirements for renting a flat in Jakarta? Reporting from the official Twitter account of the DKI Jakarta Provincial Government, the registration requirements for applying to occupy a flat are as follows:

Well, because this flat is provided for Jakarta residents, the applicant is required to have a DKI Jakarta Electronic KTP.

Rusunawa and zero DP flats do indeed show the government's efforts to provide decent housing for its people. However, the problem of providing housing is certainly complex. To better understand the role of government policies in providing affordable housing, read also the article Provision of Housing in Jakarta Needs Holistic Policies.

MRT Jakarta Develops TOD Area, Here are the Locations

The development of TOD areas in Jakarta is stated in the Regulation of the Minister of Agrarian and Spatial Planning/Head of the National Land Agency of the Republic of Indonesia Number 16 of 2017 Transit Oriented Development (TOD).

Although the term TOD has often been heard, it turns out that some people still do not fully understand the meaning of TOD. Simply put, transit oriented development (TOD) is a regional development concept that focuses on mass transit points, especially those that intersect with other transit networks.

TOD areas are also areas that prioritize pedestrians, cyclists and mass transit users.

Based on the official website of the Jakarta MRT, in the construction of the Jakarta MRT phase 1 south - north corridor, PT MRT Jakarta is developing a TOD area master plan at five stations as follows:

The official website of the Jakarta MRT also explains that the DKI Jakarta Provincial Government has assigned PT MRT Jakarta as the main operator for managing the TOD area at eight stations, as follows:

In addition, the DKI Jakarta Provincial Government in cooperation with the Jakarta MRT will also build the first underground interconnection facility on the Jakarta MRT line. This pedestrian tunnel connects Thamrin Nine UOB Building and Dukuh Atas BNI Station.

The role of MRT Jakarta in providing mass transportation and developing TOD areas is crucial to realizing a more mass transportation-friendly Jakarta. From implementing the compact city concept to reducing pollution and congestion in Jakarta, all ultimately relate to the sustainability of MRT Jakarta.

If you want to understand about the sustainability of the Jakarta MRT and other matters related to a more comfortable Jakarta, please read the article Guarding the Sustainability of the Jakarta MRT,

The Period of Validity of Building Rights (HGB) and the Procedures and Conditions for its Extension

When considering buying a property, it is important to understand the difference between the status of a Certificate of Ownership or SHM and a Certificate of Building Rights or HGB. Property ownership status with legality in the form of an HGB certificate is most commonly found in vertical housing, such as apartments or flats.

To understand the intricacies of Hak Guna Bangunan (HGB), the validity period of Hak Guna Bangunan (HGB), and how it differs from a Sertifikat Hak Milik (SHM), let's start by understanding what each means.

Understand the meaning of Certificate of Ownership (SHM)

Based on Law No.5 of 1960 concerning Basic Agrarian Regulations, a Certificate of Ownership is a certificate of full ownership of land and/or land rights owned by the certificate holder.

Certificate of Ownership (SHM) is permanent, valid for life, and can be owned for generations. Therefore, the ownership status obtained through this Certificate of Ownership is considered to have the highest legality power.

Then, what about the Building Rights Title Certificate (SHGB)?

Law No. 5/1960 on Basic Agrarian Principles Article 35 paragraph 1 explains that Hak Guna Bangunan (HGB) is the right to build and own buildings on land that is not one's own.

Therefore, the holder of a Building Rights Title (SHGB) certificate is not the owner of the land, but only has the right to construct and own buildings on the land.

How long is the validity period of the Hak Guna Bangunan (HGB) certificate?

The validity period of the HGB certificate reaches 30 years, and can be extended for a period of 20 years, and renewed for a maximum period of 30 years. Building Rights Title holders are required to apply for an extension at least 2 years before the HGB expires. In accordance with Government Regulation (PP) Number 18 of 2021 concerning Management Rights, Land Rights, Flat Housing Units and Land Registration.

What are the requirements for extending the validity period of the Hak Guna Bangunan (HGB) certificate?

Extension of the validity period of the HGB certificate can be applied for at the National Land Agency (BPN) office according to domicile. Some documents that need to be prepared to take care of the HGB extension include:

How do I extend the validity period of my Hak Guna Bangunan (HGB) certificate?

After submitting all documents and completed forms, the applicant must complete payment of the land inspection and HGB registration fees.

After the inspection of the land by the BPN, the next stage is the issuance of a decree to extend the time of the Kantah, the issuance of a decree to extend the time of the Regional Office (Kanwil), the issuance of a decree to extend the time of the BPN RI, and the registration of rights and the issuance of the HGB certificate. When the HGB certificate has been issued, you can collect it at the designated counter. You can authorize another party to apply for the HGB extension, if you are unable to attend.

How much does it cost to extend the validity period of a Hak Guna Bangunan (HGB) certificate?

The following formula is used to calculate the cost of extending the validity period of the HGB certificate:

The HGB extension periodgranted is divided by 30 (years) and multiplied by 1%. The result is then multiplied by the Land Acquisition Value (NPT) minus the NPTTKUP and multiplied by 50%.

The calculation of these costs is determined based on Government Regulation No. 46 of 2002.

How long does it take to extend the validity period of the Building Rights Title certificate?

The time required to extend the HGB certificate depends on the size of the land. For a land area of 2,000 m2 - 150,000 m2, it takes 49 days. And for land area > 150,000 m2, it takes 89 days.

Thus the explanation of SHM, HGB, and the validity period of the HGB certificate. Also read the article Urgency of HGB PeriodExtension to find out why the government needs to extend the validity period of HGB certificates in Indonesia.

Building Permit (IMB): Understanding the Definition, Requirements, and Benefits of IMB

Every building that is erected requires a Building Permit (IMB). If it does not have an IMB, the government has the right to evict or demolish a building.

The term Building Construction Permit (IMB) itself is enough to explain the core function of this permit. However, what exactly is a Building Permit?

Definition of Building Permit (IMB)

Building Construction Permit (IMB) is a proof letter from the local government stating that the building owner can construct a building according to the predetermined function and based on the approved building technical plan.

In addition, Building Permits are also given to building owners who wish to renovate, repair or add to buildings.

The matter of obtaining a Building Construction Permit (IMB) in DKI Jakarta is regulated in DKI Jakarta Governor Regulation Number 129 of 2012 concerning Procedures for Providing Services in the Building Licensing Sector.

Requirements for obtaining a Building Construction Permit (IMB)

Reporting from the official website jakarta.go.id, the requirements for obtaining a Building Permit (IMB) include:

  1. Application letter for Building Construction Permit in which there is a statement of the truth and validity of documents and data, not in a state of dispute, on paper with a Rp 6,000 stamp;
  2. Power of attorney for Building Permit application signed jointly if there is more than one name on the certificate;
  3. A letter of authorization to the owner of the Building Technical Performer Permit (IPXB) for residential houses with a building area of more than 200 m2 or a maximum number of building floors of 3, stamped Rp 6,000
  4. Identity of IMB Applicant/Person in Charge
  5. If the IMB applicant is a Legal Entity/Business EntityPolylang
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  6. Proof of Ownership of the Land for which the IMB is requested
  7. Original land overview signed by the landowner and planner, for those with more than 3 (three) proofs of land ownership.
  8. Copy of Land and Building Tax (PBB) payment receipt for the last year before due date
  9. Architectural Planning Drawings that have been authorized by the One-Stop Integrated Service Implementation Unit (UP PXSP) of the City Administration
  10. Photocopy of the previous IMB along with the attached drawings

Benefits of Building Permit (IMB)

Here are some of the benefits of a Building Permit (IMB), explained in simple terms:

Well, the Building Construction Permit (IMB) is only one of many rules or regulations from the government related to the building licensing process in Jakarta. There are also several regulations that conflict with each other. Not surprisingly, people still often have difficulty understanding building regulations.

To find out more about what needs to be addressed in government regulations in this regard, read also JPI Encourages Government to Fix Building Permit Rules.

How to Reduce Congestion in Jakarta, Government Can Implement Solutions

Jakarta's congestion level

Congestion in Jakarta is one of the biggest challenges of living in the capital city. Jakarta's congestion is a problem that must be addressed by the government.

Based on data from TomTom Traffic Index, in 2018 Jakarta's congestion ranked as the 7th most congested city in the world. This poor ranking is already an improvement from the previous year, where Jakarta's congestion ranked 4th in the world.

The good news is that from 2017 to 2021, the level of congestion in Jakarta continues to decline. This can be seen in the TomTom Traffic Index for that period. By 2021, Jakarta's congestion rate has dropped to 34%. The index also dropped to 46th out of 404 cities in 58 countries.

The decline in Jakarta's congestion levels is worth acknowledging. However, congestion remains a problem that has a major impact on the quality of life of the capital's residents.

Jakarta's traffic jams stress its citizens

Jakarta's congestion has a direct impact on the stress levels of its citizens. Reporting from The Least and Most Stressful Cities Index 2021 by VAAY, Jakarta ranks 9th city with the highest stress level out of 100 cities.

Previously, in various reports with similar themes, Jakarta has often been ranked as a city with high stress levels. Jakarta's congestion contributes significantly to the stress level of living in Jakarta.

Solutions to reduce Jakarta's congestion

Jakarta's transportation and congestion problems are inseparable. The solution to Jakarta's transportation and congestion problems is to build Jakarta vertically in the middle of the city, so that more housing is available.

Increasing the availability of housing in strategic locations can reduce the distance people travel, thereby reducing congestion. Of course, the housing in question is affordable housing for the middle class and low-income people (MBR).

Reducing Jakarta's congestion by providing housing in the city center can only be done by the government. The DKI Jakarta Provincial Government can utilize strategic public land, which is located close to public transportation. This land can be used as dense residential functions.

The application of this concept that can reduce congestion can already be seen in the Pasar Rumput Flat on the Pasar Rumput land owned by PD Pasar Jaya. Reporting from the official website of the Ministry of PUPR, this flat has three 25-story towers, with 1,984 type 36 units. The lower floor continues to function as a market, according to its original function.

By increasing mixed use development on strategic public land in Jakarta, more low-income families will be able to live in the city center. Automatically, Jakarta's congestion will be reduced.

This mixed use development can be applied in many strategic locations in Jakarta. Just imagine if the DKI Jakarta Provincial Government built more flats above terminals, stations and markets scattered in Jakarta. Of course, Jakarta's congestion will be reduced so that the stress level of Jakarta residents will decrease. By reducing congestion, Jakarta can become a healthier city for its citizens.

If you want to see a brief illustration of the implementation of solutions to Jakarta's congestion, also watch the video Fighting Traffic Jams Through Compact Housing.

Benefits, Requirements, and How to Apply for FLPP Subsidized Mortgage

Financial policies play an important role in determining people's ability to pay a down payment or installments.

To make it easier for people who want to buy a house, the government has launched several subsidized home ownership financing programs, or subsidized mortgages. One of them is the FLPP program.

FLPP stands for Housing Financing Liquidity Facility. KPR Bersubsidi FLPP, also known as the FLPP program, is implemented by the Ministry of Public Works and Public Housing.

Then, what is the definition of the FLPP program? Reporting from the Ministry of PUPR Information Service website, the Housing Financing Liquidity Facility (FLPP) is a housing financing liquidity facility support to MBR whose management is carried out by the Ministry of PUPR.

Reporting from the article The Role and Challenges of FLPP in the Housing Finance Sector on the official website of the Ministry of Finance, the FLPP program is a government intervention to overcome affordability and accessibility problems, especially for MBR who have limited financial capacity. Through this FLPP program, the government presents financial policies to help MBR buy and live in their own homes.

Let's take a look at the benefits, requirements, and how to apply for an FLPP Subsidized Mortgage.

What are the benefits of FLPPsubsidized mortgages?

In accordance with its purpose, the FLPP program is designed to provide a number of significant benefits so that MBR can become able to own housing. Reporting from the Ministry of PUPR's Information Service website, some of the benefits or benefits of FLPP KPR products include:

  1. The interest rate for the FLPP program is a maximum of 5%
  2. FLPP program interest rate is fixed throughout the loan term (with annuity calculation method)
  3. FLPP program interest rates include fire insurance premiums
  4. The term of FLPP mortgages is quite long, which is up to 20 years
  5. There is a provision of Down Payment Assistance Subsidy for MBR who use subsidized mortgages, including the FLPP program.

Other benefits of the FLPP program include VAT-free collateral, a low down payment starting from 1%, and also low credit fees.

What are the requirements to be a recipient of theFLPP KPR Program?

In accordance with the Regulation of the Minister of PUPR No. 26/PRT/M/2016 concerning Amendments to the Regulation of the Minister of PUPR No.21/PRT/M/2016 concerning Ease and/or Assistance in Acquiring Houses for Low-Income Communities, some of the requirements for recipients of the FLPP program are:

  1. Recipients of the FLPP program are Indonesian citizens and domiciled in Indonesia.
  2. Recipients of the FLPP program are 21 years old or married
  3. FLPP program recipients and spouses (husband/wife) do not yet own a house and have never received government subsidies for home ownership.
  4. Basic salary/income of FLPP program recipients does not exceed IDR 4,000,000 for Rumah Sejahtera Tapak and IDR 7,000,000 for Rumah Sejahtera Susun.
  5. Recipients of the FLPP program have a minimum working or business period of 1 year
  6. Recipients of the FLPP program have a Taxpayer Identification Number (NPWP) or Annual Income Tax Return (SPT) of individuals in accordance with applicable laws and regulations

So, how do you apply for an FLPPsubsidized mortgage?

The Housing Financing Fund Management Center (PPDPP) is tasked with the distribution and management of housing finance funds under the Ministry of PUPR. Based on information on the official PPDPP website, how to apply for an FLPP Subsidized KPR is:

  1. Ensure that you have met and completed all the requirements of the FLPP program.
  2. Determine the location of the desired house by coming directly to the developer who built the FLPP program house in order to know the environmental and residential conditions, or
  3. Visit the Implementing Bank that distributes the FLPP program directly for information on the location of FLPP program houses, as well as calculating affordable credit installments, and other facilities.
  4. Make a Credit Agreement with the Implementing Bank that you have chosen (after the FLPP KPR application is approved by the Bank)

The FLPP program is only one of many financial policies aimed at addressing the housing crisis in Indonesia. In addition to the FLPP program, there is also the 0 Rupiah DP House Program, and other subsidy programs.

So, has the government's subsidy program so far helped reduce the housing backlog ? And are there other financial policies that the government should explore? To further explore the above questions, read also Not Only Construction, Financial Policies are Crucial for Providing Owned Housing.