Implementation of a new homeownership program in Jakarta: The case of zero down-payment housing program

Abstract

Governments worldwide deal with the question of how to elevate their low-income household (LIH) into a higher standard of living. The main view of scholars on housing is that homeownership usually is the first step into improving the lives of people with a low income. The Province of Jakarta struggled with the same question. To address the housing challenge in Jakarta, they created the Zero Down-Payment Housing Program (ZDPHP) in 2017. This program's main purpose is to provide financing facilities to meet the basic need for adequate housing, targeting the LIH. However, the adaptation of this program has been slow, begging the question of what could be done to attract more beneficiaries. This article is intended to help improve the ZDPHP in Jakarta and give a perspective for other places thinking about implementing the same program. It explores the current eligibility criteria from the perspective of two out of five elements of the "5 As of Adequate Housing", Affordability and Accessibility, to understand the underlying housing challenge. Indicators of those two elements were collected from the data associated with the project. These data sources were supported and further explained using empirical data from policies analysis, interviews, FGDs, surveys and other existing databases. The most important findings were found as follows. Firstly, the best proportion of housing expenses to household income is to look at the actual comparison between household income and what a household pays for housing and transportation in its respective city. Secondly, to further strengthen the housing planning in Jakarta, an education program should be enforced alongside the ZDPHP. Lastly, with the recent launch of regulation regarding government land use permits, it is hoped that this will be a key solution to overcome land limitations and reduce house prices to become more accessible and affordable.