STRUCTURE OF PROBLEM OF PROVIDING HOUSING DEMANDFOR LOW INCOME PEOPLE IN URBAN

• Main Author: SIANTURI (NIM: 25596042); Pembimbing : Saswinadi Sasmojo, Ir.,Ph.D.,Prof., JUHARI
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/13588
• Institution: Institut Teknologi Bandung

In coping with the problem of housing for low income people in urban settlements, the government has launched a housing policy, where by a nation wide home ownership program for that segment of the society is undertaken. The program is implemented through the promotion and simulation of the development housing complexes, where low cost houses, known as 'rumah sederhana (RS) and 'rumah sangat sederhana (RSS), are built, to be offered to low income people that can purchase the house using a special credit scheme,i.e.with low interest rate and long term repayment.<p>However, the program, that taken place since the second five Year Development Plan till the sixth Year Development Plan, has not been succeeded in coping the supply-demand gap: the need and the demand has always exceeding the supply, and the gap is wider through the years.<p>The growing gap is not only due to the lag in the supply, but also due to the very limited purchasing power of the low income people. With the increasing prices for food and other basic consumption goods, and the value of money that they earn as their income, have made their level of capacity for expenditure drastically dropped.<p>Even with the subsidized loan scheme that the government is providing, the price of RS and RS S houses are still way above their capacity to pay. Aside from not successful with respect to the objective, the program is also costing the government considerably. It is therefore considered necessary to increases the above mentioned government policy and program, and for that purpose a better comprehension about the problem is required.<p>The study presented in this theses is an attempt to look into the problem more carefully, i.e. to develop a better understanding about the structure of the problem, and the following items have been revealed:<p>(1)in terms of all the ability to built houses, it is observed that the rate of supply has always been lagging the demand rate.<p>(2)even with all of the various cost reduction efforts, the price of the houses that are built through the program are always much above the level of affordability of the target group of the program, and the gap between the two growing;<p>(3)due to the limited land area availability in cities, the location of areas where low cost houses are built tend to farther and farther away from the center of activities in the cities; consequently the low income people that has been able to purchase those houses have to cope with higher expenditure, since they have to spent much more for their transport cost for their daily work trips.<p>The low income people have very little opportunity to improve their income, although there have been a continuous high economic growth; this indicates that there has not been a good working mechanism for income distribution. <br />