Jakarta's poor face chronic housing problems<\/p>\n
By Sebastianus Darwin<\/p>\n
JAKARTA (JP): Even though Jakarta was only officially founded
\non June 22, 1527, it existed long before. Five thousand years
\nago, the area now known as Jakarta already existed. Experts have
\nconcluded that Jakarta's lower plains were formed by deposits
\nfrom the Gede, Pangrango, and Salak mountains.<\/p>\n
These plains have seen many changes, and today, land in
\nJakarta is worth a fortune. As the capital, it is not surprising
\nthat Jakarta was flooded by settlers. It has become a center of
\nbusiness and industry. The rapid inflow of newcomers from
\ndifferent social and cultural backgrounds has added to the
\ncomplex problems of the capital. One indication of this is the
\nwide gap between the city's rich and the poor. Only 20 percent of
\nthe total population belongs to the middle-upper income brackets.<\/p>\n
Jakarta's estimated population in 1995 was 9.95 million, made
\nup of 2,081,600 families. A report made by the City Housing
\nAgency indicates that only 17 percent of the citizens, making
\nmore than Rp 200,000 (US$86.95) a month, can afford modest
\nhousing and very simple accommodation,<\/p>\n
About 11.5 percent make less than Rp 30,000 a month, 21
\npercent are in the Rp 30,000 - Rp 50,000 monthly income bracket,
\n34 percent in the Rp 55,000 to Rp 200,000 monthly income bracket
\nand 16.5 percent earn between Rp 120,000 and Rp 200,000 a month.<\/p>\n
Forecasts regarding low-cost housing are gloomy, since half of
\nthe low-cost housing has recently become more expensive. Deposits
\nand installment rates have shot up too.<\/p>\n
It is sad that the increase in the prices of \"modest\" and
\n\"very simple\" houses is thwarting efforts to provide housing for
\nall. The local cement price shot up by 40 percent in April last
\nyear and triggered increases in the price of other essential
\nmaterials.<\/p>\n
After the cement price hike, the government had no choice but
\nto raise the prices of these low-cost houses.<\/p>\n
The price of a 21-square-meter type house went up from Rp 4.5
\nmillion to Rp 5 million (a 11.7 percent increase), while the 36-
\nsquare-meter type from Rp 6.1 million to Rp 7 million (a 14.75
\npercent increase). Meanwhile, in the \"simple\" housing range, the
\nprice of the 18-square-meter and 21-square-meter types increased
\nby 10 percent.<\/p>\n
This does not only result in high inflation, it also puts a
\ngreater strain on the poor.<\/p>\n
Meanwhile, cement producers, distributors and retailers made
\naround Rp 250 billion in profits from the price hike. This is
\nequal to 55,000 houses, half of the low-cost housing target for
\n1994.<\/p>\n
The price rise of \"modest\" and \"very simple\" houses will, no
\ndoubt, inflate the number of the homeless in Jakarta, although
\nhousing is a basic need.<\/p>\n
There are at present 1,433,39 houses in Jakarta, according to
\nthe agency's survey -- 629,754 permanent houses, 522,165 semi-
\npermanent buildings and 281,620 shacks. 55 percent of all houses
\nare semi-permanent or temporary quarters.<\/p>\n
Then there are 8,158 non-residential buildings occupied by
\ngovernment and private offices, government and private industries
\n5,256 buildings, shops comprise of 39,389 buildings, warehouses
\n4,477 buildings, and others 4,370 buildings.<\/p>\n
According to a recent survey, 60 percent of Jakarta citizens
\nlive in the kampongs. It has to be admitted that such kampong
\nsettlements are not structured in an orderly way. Aside from
\ntheir worryingly high density, they lack facilities.<\/p>\n
Most kampongs are located in dangerous places, along river
\nbanks, near railroads or below high-voltage cables. Such
\nlocations go against city planning rules.<\/p>\n
Even so, the Jakarta administration is trying to bring order
\nto the kampongs, and 30 percent of the kampongs have been
\nrestructured so far. Jakarta, however, has a number of well-
\nplanned residential areas such as Menteng (Central Jakarta),
\nKebayoran Baru and Tebet (South Jakarta), Rawamangun in East
\nJakarta.<\/p>\n
The demand for new houses between 1985-2005 is around
\n1,609,000 houses. This means that 64,000 dwellings have to be
\nconstructed annually.<\/p>\n
There is the problem of land availability. The Jakarta Spatial
\nPlanning Act only allows construction on 14,300 hectares in the
\ncity. About 13,000 hectares are allocated in West, East and
\nCentral Jakarta, while the rest 1,300 hectares are allocated in
\nSouth Jakarta.<\/p>\n
Strategy<\/p>\n
It is obvious that the city administration won't be able to
\ndeliver housing for Jakartans on its own. Seventy percent of the
\nyearly load (64,000 units) will have to be shouldered by the
\nprivate sector and the public. There seems to be no other option
\nbut to invite the public to participate in the low-cost housing
\nprogram.<\/p>\n
Housing development facilities in Jakarta is carried out by
\nthe state-owned housing company Perum Perumnas, housing
\ndevelopers grouped in the Indonesian Real Estate Association
\n(REI) and the state-owned Bank Tabungan Negara (BTN).<\/p>\n
Scarcity of land is becoming a concern. In Strategic
\nDevelopment Planning of Jakarta for 1992-1997, it was made clear
\nthat multi-story buildings have first priority in housing
\ndevelopment.<\/p>\n
The demand for cheap housing is pressing. It is one of the
\nmany reasons why multi-story housing complexes complying to
\noccupancy standards and furnished with infrastructure for sport
\nfacilities, parks, gas, clean water, places of worship and other
\npublic facilities are prioritized.<\/p>\n
Multistory housing estates are currently under construction in
\nfour mayoralties, in Tanah Tinggi, Pejompongan and Karet Tengsin
\n(Central Jakarta), Cipinang Muara, Pulo Gadung and Kalimati (East
\nJakarta), Penjaringan, Luar Batang and Semper Barat (North
\nJakarta), and Bulak Wadon and Kebon Jeruk (West Jakarta).<\/p>\n
By the turn of the millennium, 3,285 apartments will be built
\nin Central Jakarta, 2,969 units in East Jakarta, 3,461 units in
\nNorth Jakarta, 2,689 units in West Jakarta and 3,346 units in
\nSouth Jakarta.<\/p>\n
The Jakarta administration says 70,000 multistory buildings
\nare needed, of which 70 percent will be houses and 30 percent
\napartment buildings. Of the total, 10 percent will be for the
\nluxury level, 40 percent for middle-income earners and 50 percent
\nfor lower income groups.<\/p>\n
The Jakarta administration will build 30 percent of the multi-
\nstory buildings with the private sector taking on the rest.<\/p>",
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