T

he promise of Governor Anies Baswedan and his deputy Sandiaga Uno to provide low-income people with housing through the zero rupiah down payment program will be hard to implement because of stringent requirements by banks, according to the Jakarta Public Housing and Public Building Agency.

The agency’s head, Agustino Darmawan, explained that, as required by the banks as creditors, only people with a salary three times higher than the monthly installment are eligible to receive the credits for purchasing houses. It would be impossible to implement the program for those with no fixed income or permanent job, he said.

“If the monthly installment amounts to Rp 2 million (US$147.8), the debtor should have a monthly salary of Rp 6 million,” Agustino said on Thursday, refusing to elaborate on the program’s payment scheme as his agency was still studying the matter.

The zero rupiah down payment housing program, which aims to offer affordable houses for low to middle income people, was a key campaign promise of Anies and Sandiaga.

In the 2018 budget priorities (KUA-PPAS) submitted to the City Council on Monday, Anies and Sandi proposed a budget for the program at Rp 800 billion (US$59 million).

The program targeted Jakartans earning up to Rp 7 million per month who do not own property, including informal workers with irregular income, promising them housing amid Jakarta’s rising property prices.

Indonesian Property Watch (IPW) executive director Ali Tranghanda said the city administration must answer big questions surrounding the program, such as on the land that would be used, the costs and whether it could be used for investment.

If the land used for the program was city-owned, the administration would not allow investments, Ali said. “People would only have the right to manage and the right to build certificates,” he added.

Meanwhile, by partnering with a private developer, the targeted consumers would be those with a salary of more than Rp 7.5 million, he said.

“Developers want to make profit. For apartments priced at Rp 300 million, it is impossible to make a profit. The apartments can be afforded by at least double income couples earning minimum wages, who would pay around Rp 2 million to 2.5 million each month.”

A shopkeeper in Palmerah Market in West Jakarta, Dewi Saputri, 27, said that even with a salary of Rp 2 million per month, she was unable to take part in the program.

“I thought I would qualify for the program because I earned less than Rp 7 million, but I was never able to save because I lived paycheck to paycheck,” said Dewi, who lives in a boarding house in Kemanggisan, West Jakarta.

Another Jakartan, Eunike Maharani, 22, who earns a minimum wage of Rp 3.3 million working in a small e-commerce company, said she the zero rupiah down payment program was not straightforward.

“The scheme is still unclear, there might be additional charges,” she said.

Eunike, who plans to marry her boyfriend in about five years time, said she would rather buy a house or an apartment in Jakarta’s satellite cities.

“It’s a decision you’d likely make once in a lifetime. I’d rather commute every day than live in [a rented house or apartment in] Jakarta.” (dis)