Jabodetabek Slowly Adopts the Singapore–Hong Kong Model

The reshaping of housing landscapes in major cities is inevitable. PT Sarana Multigriya Finansial (SMF) regards flats and apartments as the dominant choice in urban areas, particularly in the Jabodetabek region. SMF’s Business Director Heliantopo said the shift from landed houses to vertical housing is a natural process as seen in many countries. ‘In dense cities such as Singapore, Hong Kong, and even Kuala Lumpur, people typically live in flats or apartments,’ he said at a press conference on Wednesday afternoon (4 March 2026).

Factors such as land scarcity and the distance between housing and workplaces will push people to consider overall cost efficiency, including transport costs and commuting time. ‘People will compare transport costs, time, fatigue, with living in an apartment closer to work. Which is more efficient?’ he said.

The shift may proceed slowly due to cultural factors. Indonesians have historically tended to prefer landed houses. ‘Indeed, the culture may not yet be accustomed to living in flats. But with land constraints and the distance between home and work, it will gradually shift,’ he explained.

The government is currently expanding housing interventions not only for landed houses but also for flats through the FLPP scheme. SMF Chief Economist Martin Daniel Siyaranamual regards the policy as a response to real-world needs on the ground. ‘When talking about big cities, the last option is a flat. It is no longer possible for affordable landed homes to be available in city centres,’ he said.

Martin stressed the importance of formulating housing interventions based on clear needs, whether the focus is on ownership or on housing affordability. ‘First, we must assess what the need is. Is it ownership or housing affordability? Because the policy approach can differ,’ he said.

He also highlighted the stigma attached to flats, which is still often viewed negatively by segments of society. ‘The stigma that flats are squalid and unfit must be changed. In many countries, living in apartments is very common and not an issue,’ Martin asserted.

With proper planning and adequate financing support, flats can become a strategic solution to the challenges of urbanisation. ‘When land is scarce and demand high, vertical housing is an inevitability. It is just a matter of how we socialise it and ensure its quality,’ Martin said.