Welfare flats taken over by urban professionals
The Jakarta Post, Jakarta
Eleven years after his family's home in Bendungan Hilir, Central Jakarta, burned down, Ali -- not his real name -- now lives on the third floor of an apartment complex that was built on top of the charred ruins by the city administration.
However, Ali and his family are among the few original tenants left, as others have either sold or rented out their apartments. A sign at the front of the building declares: "Low-cost Apartment Complex built on land owned by Jakarta City Administration".
"I'd say about 99 percent are outsiders," said Ali, whose family now owns five units, four of which they rent out.
The "outsiders" Ali refers to are young, mostly single, urban professionals who have taken over six ten-story buildings, commonly referred to as the Benhil 2 Apartments that were built for the mostly poor families who lost homes in the fire eleven years ago.
"Demand is high," said Ali. "An empty unit is usually rented out in two or three days."
The 614, three-by-seven meter studio apartments at Benhil 2, which is strategically located in the heart of the city, are rented out for between Rp 400,000 (US$43) and Rp 650,000 per month, exclusive of water and electricity. Most units are equipped with air conditioners and a stove.
The apartment compound also offers roughly 225 parking spaces for cars, which an online ad for a Benhil 2 studio proclaims "have never been occupied by a car built before 1990".
Even though the parking space costs an extra Rp 40,000 per month, at night cars constantly jostle for the best spots.
"Don't worry, for an extra Rp 2,000 per day a security guard will guarantee a spot," Ali said assuringly.
The city originally sold ownership of the apartments, completed in 1996, to eligible families at a 50 percent discount.
Eligible families paid between Rp 10 million and Rp 15 million for their apartments, repayable in monthly installments over a five to 20 year period.
Ali said that current prices for the units were anywhere between Rp 60 million and Rp 80 million, on top of any remaining mortgage payments.
Ali himself still owes about Rp 8.5 million on each of his family's five studios.
Under current regulations, the rental of a subsidized unit to unqualified parties before the mortgage has been paid off is technically prohibited, as the city retains legal ownership of the units.
City Housing Agency head Hari Sasongko recently said that some 70 percent of the city's 7,000 subsidized units were occupied by people who did not qualify for them. He warned that city officials would conduct raids at the suspected units and cut off their subsidy.
Ali, however, questioned the legality of this.
"These units are ours," said Ali. "But if a tenant does get evicted by the City, we'll refund any remaining rent."