A competitive Jakarta will attract investors. The positive impact is of course more jobs and the creation of a strong and resilient economy.

To achieve this, Jakarta needs to fix several things. One of them is licensing, which is an indicator of the Ease of Doing Business (EODB). This year, Indonesia ranks 73 out of 190 countries surveyed by the World Bank. In the survey, Jakarta and Surabaya were used as references, but more inclined to Jakarta because of its larger population.

A similar study was also released by the Asia Competitive Institute at the National University of Singapore in 2017. In the study published every two years, the ease of doing business in Jakarta is ranked 4th out of 34 provinces. Jakarta is behind East Java, West Java, and Central Java.

One of the key variables determining the competitiveness of a city or country relates to construction licensing. The World Bank's 2019 EODB study states that the property licensing and registration scores are 66.57 and 61.67, respectively. These scores are lower than nearby countries such as Malaysia, Thailand, and Vietnam which are above 70.

For this reason, JPI invites the government, developers and consultants to simplify the licensing process. Important points in the simplification include formulating rules for building requirements such as fire protection. These rules facilitate the evaluation and approval process. The goal is to achieve the licensing process target of 8 months. Currently, the licensing series is only completed in 21 months according to practitioners in a study conducted by the Jakarta Property Institute.

A denser, built-up Jakarta not only has the potential to increase economic activity, but can also significantly improve the livability of the city.

A frequently used indicator of density and a contributor to livability is walkability, something Jakarta needs to improve.

Only 7 percent of Jakarta's roads are equipped with proper sidewalks, an indication of urban sprawl, and vehicle-first urban design. This also explains why Indonesia ranks last among countries where people are more likely to walk.

Long commutes and high transportation costs as a result of urban sprawl are particularly detrimental to low-income communities. Jakarta's driving culture contributes to health issues related to air pollution, a passive lifestyle, and a lack of social interaction that usually comes with walking.

A denser, more vertical Jakarta makes efficient use of land. With proper planning and design, Jakarta can accommodate neighborhoods for people of all incomes. This is key to creating a more lively atmosphere, and leaving room for green space, which currently accounts for only 10 percent, far short of Jakarta's target of 30 percent of its land area.

To this end, the Jakarta Property Institute has researched and proposed an informal settlement redevelopment scheme to the government. This scheme would allow existing residents to sustain their lives by enabling them to live in the same area and have apartment units that are, if not the same, larger than their previous land. The neighborhood will also provide public facilities and green spaces that are often not available in informal settlements.

The Jakarta Property Institute will also participate in supporting pedestrian interconnectivity.

Indonesia is one of the few countries in the world with an expensive cost of living. One indicator is Indonesia'sprice-to-income ratio, which is 13.81. This figure, which is an indicator of housing affordability, is shocking. Indonesia is far behind Malaysia and Japan, where the ratio is 9.77 and 11.25, respectively. The higher the ratio, the less affordable the house.

An example of high housing prices can be seen in Jakarta, the capital city of Indonesia. Young people (millennials) cannot afford to buy a house in the city center. This phenomenon has led to the city center constantly becoming emptier due to the uncontrolled spread of population to the suburbs.

As a result of this population dispersal, long commutes and traffic jams to get to the city center became inevitable. Empty fertile lands in the city center also turned into concrete jungles.

To curb this population spread, how can we make Jakarta's spatial layout compact and housing prices affordable for everyone?

One way to prevent house prices from continuing to soar is to increase the number of floors available. Jakarta must build upwards (vertically), because land is increasingly scarce. The average Building Floor Coefficient in Jakarta is still 2, while Singapore's coefficient is 9. Jakarta's regulations do not fully support vertical development and dense development. In other words, the building floor coefficient, which has an effect on housing supply, is deliberately limited.

The Jakarta Property Institute actively participates in dialogs on policies that will increase the building floor coefficient. JPI also works closely with experts, practitioners and local governments on TOD (Transit Oriented Development), zoning regulations, and the Detailed Spatial Plan (RDTR).