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Determinants of vacant subsidized house in Greater Metropolitan Jakarta Area, Indonesia

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Abstract

This paper explores the determinants of vacant subsidised housing in Jakarta. In a long race with the ever-growing housing backlog in Indonesia, in 2010, the government in partnership with private developers and banks, launched a subsidised housing provision programme. Affordable fixed-price houses with very low interest rates and down-payments were made available to individuals with low incomes. However, between 2010 and 2016, approximately one-fifth of the total purchased subsidised houses remained vacant. A snowball sampling method was used to recruit respondents in the Greater Metropolitan Jakarta Area, with whom semi-structured interviews were then conducted. The focus of this paper is the determinants that make low-income families reluctant to move into subsidised housing. The research has identified socio-cultural context and mistargeted beneficiaries as determinants, complementing existing literature on vacant housing and housing provision policy.

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Acknowledgements

We would like to express gratitude to Directorate of Research and Community Engagement Universitas Indonesia (DRPM UI) for administering the Hibah Publikasi Terindeks International (PUTI) Q2 Tahun Anggaran 2020 scheme under grant number NKB-1758/UN2.RST/HKP.05.00/2020, and Faculty of Engineering Universitas Indonesia (FTUI), Department of Architecture for their support in this research.

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Adianto, J., Gabe, R.T. Determinants of vacant subsidized house in Greater Metropolitan Jakarta Area, Indonesia. J Hous and the Built Environ 36, 1813–1830 (2021). https://doi.org/10.1007/s10901-021-09828-x

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