President calls for more affordable housing to meet demand.
There is a distinct lack of housing in Indonesia. In fact the Central Bureau of Statistics revealed that in 2015 there was a deficit of 11.4 million units. Despite this being a decline of 16 percent from 2014, 20 percent of demand is for low cost housing.
This has been exacerbated by the rise in urbanisation. Growing by 4.1 percent, a rate ahead of both India and China. Recognising this the government set aside funds to assist this sector of the property market. Additionally President Jokowi has set targets solely for the affordable housing sector. The aim is to build two million houses annually.
During a groundbreaking ceremony for low-cost housing project, President Jokowi expressed his keenness for the government to continue assisting affordable housing. The ceremony at Banten Province was for a development whose units are aimed for blue-collar workers.
Six thousand of the nine thousand units at this particular project by developer PT PP will be 30 square metres. Priced at IDR 293 million, buyers will only be required to make a deposit of one percent followed by monthly installments of IDR 1.2 million. The aim is to appeal to those seeking affordable housing through this attractive payment scheme.
The president commented that there is a severe need for such housing in Indonesia, and that he will support the growth of this sector. Currently there are low-cost projects in the pipeline for West Java in Depok and Bogor. Again geared towards blue-collar workers these units are priced at a level that will be realistic for labourers to purchase.
President Joko Widobo has said that he will be keeping a close eye on the situation to ensure that the units are going to right segment of society. Should any of the projects not fulfill their goal of providing affordable housing and rather be snapped up by the more affluent, then the president said he would put a halt to any future projects.
The building of housing in industrial zones specifically for labourers will also minimise transportation times and costs. Adding another economical slant to the situation.
