1. INDONESIA’S HOUSING POLICY AND DEVELOPMENT

2. ORGANIZATION STRUCTURE OF KIMPRASWIL MINISTER CONSTRUCTION & INVESTMENT SPATIAL PLANNING RESEARCH & DEVELOPMENT HUMAN RESOURCES DEVELOPMENT SECRETARIATE GENERAL INSPECTORATE GENERAL STAFF EXPERTS REGIONAL INFRASTRUCTURE HOUSING & SETTLEMENTS RURAL & URBAN DEVELOPMENT WATER RESOURCES DEVELOPMENT FUNCTIONAL STAFF

3. POPULATION OF INDONESIA 1961-2000 URBAN RURAL TOTAL YEAR 1990 1980 2000 1971 1961 14.6 20.6 32.9 55.1 78.3 82.1 98.6 114.2 123.1 128.2 97.5 119.2 147.1 178.2 206.5 IN MILLION

4. SOCIAL-ECONOMIC INDICATORS (2000) INDICATOR 2000 LIFE EXPECTANCY INFANT MORTALITY PEOPLE UNDER POVERTY LINE POPULATION GROWTH RATE INCOME PER CAPITA ECONOMIC GROWTH 65 YEARS 50/1.OOO LIFE BIRTHS 49 MILLION < 2% < US$ 100 < 1%

5. INDONESIA CHARACTERISTICS OF HOUSING DELIVERY SYSTEM INFORMALFORMAL TOTAL MARKET SHARE ROLE OF GOVT CREDIT MECHANISM HOUSING CONDITION HOUSE TENURE LAND TENURE HOUSE STRUCTURE QUALITY INFRASTRUCTURE QLTY INCOME LEVEL SERVED < 80% NO DIRECT ASSISTANCE SUPPORT THRU BTN < 20% PERUMNAS, DEVELOIPERS NO SUBSIDYSUBSIDIZED MOSTLY EXPANSION & RENOVATION, SELF-FINANCED PRODUCTION OF NEW HOUSE BY DEVELOPER SECURE INSECURE SECURE VARIED WITH MUCH SUB-STANDARD MEET OFFICIAL STANDARDS MOST INADEQUATEADEQUATE PARTICULARLY LOWER INCOMEMODERATE TO HIGH INCOME

6. HOUSING INSTITUTIONAL FRAMEWORK MAJOR HOUSING INSTITUTIONS BTN (STATE SAVING BANK) BANK INDONESIA PERUM PERUMNAS (UHDC) BPN (NATIONAL LAND AGENCY) BKP4N (NATIONAL HOUSING POLICY BOARD) DEPARTMENT OF KIMPRASWIL REAL ESTATE INDONESIA

7. INDONESIA’S HOUSING SITUATION INDICATORS Floor Area per Room (m2)10.17 Person per Room1.28 Householder per Dwelling Unit1.14 Permanent Structure67 Water Connection66 Journey to Work (minutes)40 Owner Occupancy56 UNCHS/World Bank : Housing Indicator 1990

8. PROBLEMS RELATED TO HOUSING DEVELOPMENT Housing Deficit> 750.000 units/year Urbanization4% -6% per year Scarcity of Available Land Financial Constraints New Life Style Over-Investment High Subsidy (for formal delivery system) Complicated Land Titling

9. HOUSING VISION AND MISSION The Vision Adequate shelter for all citizen of Indonesia in an environment that is healthy, safe, harmonious, and sustainable human settlements The Mission Assist the people to be able to live in adequate dwelling in a healthy, safe, harmonious and sustainable human settlements through empowerment and enabling approach Assist the people in creating culture of organic growth in the community through human settlements development

10. PAST EXPEREINCES IN HOUSING DEVELOPMENT Formal delivery system supplied 20% of the total housing need Housing construction came to a halt at the time of economic crisis Provision of housing (from supply side) has led to financial burden

11. HOUSING BASIC POLICY Priority of development is given to housing development Housing development takes into consideration sustainable development principle Human settlements is the joint responsibility (people and government)

12. HOUSING BASIC STRATEGY Enabling all stakeholders in housing development Creating conducive atmosphere by improving access to key resources and development opportunities Decentralizing housing development to local governments

13. HOUSING STRATEGIC OBJECTIVES Providing housing assistance to under-served population Improving the capacity of human settlement institutions Improving support system for housing and human settlements development

14. INDONESIA’S HOUSING ACTION PLAN (2000-2020) LOW COST HOUSING FINANCE LOW COST HOUSING AND BUILDING MATERIALS COMMUNITY EMPOWERMENT