Jakarta's poor face chronic housing problems

Jakarta's poor face chronic housing problems

By Sebastianus Darwin

JAKARTA (JP): Even though Jakarta was only officially founded
on June 22, 1527, it existed long before. Five thousand years
ago, the area now known as Jakarta already existed. Experts have
concluded that Jakarta's lower plains were formed by deposits
from the Gede, Pangrango, and Salak mountains.

These plains have seen many changes, and today, land in
Jakarta is worth a fortune. As the capital, it is not surprising
that Jakarta was flooded by settlers. It has become a center of
business and industry. The rapid inflow of newcomers from
different social and cultural backgrounds has added to the
complex problems of the capital. One indication of this is the
wide gap between the city's rich and the poor. Only 20 percent of
the total population belongs to the middle-upper income brackets.

Jakarta's estimated population in 1995 was 9.95 million, made
up of 2,081,600 families. A report made by the City Housing
Agency indicates that only 17 percent of the citizens, making
more than Rp 200,000 (US$86.95) a month, can afford modest
housing and very simple accommodation,

About 11.5 percent make less than Rp 30,000 a month, 21
percent are in the Rp 30,000 - Rp 50,000 monthly income bracket,
34 percent in the Rp 55,000 to Rp 200,000 monthly income bracket
and 16.5 percent earn between Rp 120,000 and Rp 200,000 a month.

Forecasts regarding low-cost housing are gloomy, since half of
the low-cost housing has recently become more expensive. Deposits
and installment rates have shot up too.

It is sad that the increase in the prices of "modest" and
"very simple" houses is thwarting efforts to provide housing for
all. The local cement price shot up by 40 percent in April last
year and triggered increases in the price of other essential
materials.

After the cement price hike, the government had no choice but
to raise the prices of these low-cost houses.

The price of a 21-square-meter type house went up from Rp 4.5
million to Rp 5 million (a 11.7 percent increase), while the 36-
square-meter type from Rp 6.1 million to Rp 7 million (a 14.75
percent increase). Meanwhile, in the "simple" housing range, the
price of the 18-square-meter and 21-square-meter types increased
by 10 percent.

This does not only result in high inflation, it also puts a
greater strain on the poor.

Meanwhile, cement producers, distributors and retailers made
around Rp 250 billion in profits from the price hike. This is
equal to 55,000 houses, half of the low-cost housing target for
1994.

The price rise of "modest" and "very simple" houses will, no
doubt, inflate the number of the homeless in Jakarta, although
housing is a basic need.

There are at present 1,433,39 houses in Jakarta, according to
the agency's survey -- 629,754 permanent houses, 522,165 semi-
permanent buildings and 281,620 shacks. 55 percent of all houses
are semi-permanent or temporary quarters.

Then there are 8,158 non-residential buildings occupied by
government and private offices, government and private industries
5,256 buildings, shops comprise of 39,389 buildings, warehouses
4,477 buildings, and others 4,370 buildings.

According to a recent survey, 60 percent of Jakarta citizens
live in the kampongs. It has to be admitted that such kampong
settlements are not structured in an orderly way. Aside from
their worryingly high density, they lack facilities.

Most kampongs are located in dangerous places, along river
banks, near railroads or below high-voltage cables. Such
locations go against city planning rules.

Even so, the Jakarta administration is trying to bring order
to the kampongs, and 30 percent of the kampongs have been
restructured so far. Jakarta, however, has a number of well-
planned residential areas such as Menteng (Central Jakarta),
Kebayoran Baru and Tebet (South Jakarta), Rawamangun in East
Jakarta.

The demand for new houses between 1985-2005 is around
1,609,000 houses. This means that 64,000 dwellings have to be
constructed annually.

There is the problem of land availability. The Jakarta Spatial
Planning Act only allows construction on 14,300 hectares in the
city. About 13,000 hectares are allocated in West, East and
Central Jakarta, while the rest 1,300 hectares are allocated in
South Jakarta.

Strategy

It is obvious that the city administration won't be able to
deliver housing for Jakartans on its own. Seventy percent of the
yearly load (64,000 units) will have to be shouldered by the
private sector and the public. There seems to be no other option
but to invite the public to participate in the low-cost housing
program.

Housing development facilities in Jakarta is carried out by
the state-owned housing company Perum Perumnas, housing
developers grouped in the Indonesian Real Estate Association
(REI) and the state-owned Bank Tabungan Negara (BTN).

Scarcity of land is becoming a concern. In Strategic
Development Planning of Jakarta for 1992-1997, it was made clear
that multi-story buildings have first priority in housing
development.

The demand for cheap housing is pressing. It is one of the
many reasons why multi-story housing complexes complying to
occupancy standards and furnished with infrastructure for sport
facilities, parks, gas, clean water, places of worship and other
public facilities are prioritized.

Multistory housing estates are currently under construction in
four mayoralties, in Tanah Tinggi, Pejompongan and Karet Tengsin
(Central Jakarta), Cipinang Muara, Pulo Gadung and Kalimati (East
Jakarta), Penjaringan, Luar Batang and Semper Barat (North
Jakarta), and Bulak Wadon and Kebon Jeruk (West Jakarta).

By the turn of the millennium, 3,285 apartments will be built
in Central Jakarta, 2,969 units in East Jakarta, 3,461 units in
North Jakarta, 2,689 units in West Jakarta and 3,346 units in
South Jakarta.

The Jakarta administration says 70,000 multistory buildings
are needed, of which 70 percent will be houses and 30 percent
apartment buildings. Of the total, 10 percent will be for the
luxury level, 40 percent for middle-income earners and 50 percent
for lower income groups.

The Jakarta administration will build 30 percent of the multi-
story buildings with the private sector taking on the rest.