Caution greets ‘zero down’ housing program

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Jakarta Governor Anies Baswedan’s most anxiously awaited project was launched this month as he entered his second year in office: The zero down payment housing program, which aims to provide an affordable public housing option.

Nia, a married 31-year-old office worker and South Jakarta resident, has been waiting for the program. She had saved up money with hopes of purchasing a zero down payment house soon.

On Oct. 12, the project finally became a reality after several delays. In the meantime, Nia had bought an apartment unit in Kalibata, South Jakarta.

“I bought the apartment because I thought that if Anies developed a zero down payment program for houses, I would buy one [of those] and rent out my apartment,” she told The Jakarta Post.

However, when she learned that the zero down payment program covered apartments and not stand-alone houses, Nia shelved her plans to purchase a property under the program.

“If my husband and I did not already have a place to live, I might have been interested in purchasing [an apartment]. But it will take a long time to build the apartments, and it still seems uncertain,” she said.

Nia might not be the only one waiting. Anies has yet to meet the public’s demand for stand-alone residential houses, and has instead offered 780 apartments as vertical housing developments in Pondok Kelapa, East Jakarta.

Meanwhile, the rising price of land due to the growing shortage of unused space in the capital has made potential developers reluctant to support the project, which raises the question of the project’s sustainabilty.

“Land in Jakarta is expensive. This means the feasibility of subsidized low-cost apartments uncertain, let alone the development of stand-alone houses,” said Paulus Totok Lusida, the secretary-general of Real Estate Indonesia.

In addition, the potential for land disputes could also keep developers away from the project. Totok suggested that one solution would be to use city-owned land.

Only two developers are involved with Jakarta’s zero down payment housing program: PD Pembangunan Sarana Jaya, a city-owned enterprise (BUMD), and private construction firm Totalindo Eka Persada.

Totalindo Eka Persada president director Donald Sihombing has expressed confidence that the project will attract buyers. “They are low-cost apartments, but their quality is the same as Bassura City or Kalibata City,” he said.

Donald added, however, that they would wait and see whether the pilot project was successful before making any decision on further cooperation.

As for the project’s financing, city-owned Bank DKI is the only bank involved.

The head of the project’s Technical Management Unit, Zikran Kurniawan, expressed his hope that more private companies would join the program.

“We absolutely cannot do this alone. We need more support from other developers and banks. If it is profitable, others will also become interested,” he said.

Following Bank Indonesia’s (BI) new regulation on zero down payment property loans earlier this year, the project should be able to attract support from more banks. However, even mortgage specialist Bank Tabungan Negara (BTN) seems reluctant to offer a zero down payment scheme.

“We already have a 1 percent property loan program. We do not believe we can [obtain] the borrower’s commitment with a zero down payment [plan],” BTN president director Maryono told kontan.co.id on July 1, 2018.

In particular, the 5 percent fixed interest rate set for property loans might also cast doubts over banks’ willingness to support Anies’ program because of uncertainties over movements in BI’s interest rates.

Senior associate director of investment services Aldi Garibaldi at Colliers International Indonesia said that no one could control interest rate movements over the long term, especially over the 15- to 20-year tenure of the housing program. Hence, even with a zero down payment scheme, the decisions on the mortgage rate should be left to the bank.

“Five percent is already below the current [mortgage] rate of 5.75 percent to 6 percent. How long can banks hold this low rate?” said Aldi.

Furthermore, Anies’ housing team had yet to approach banks directly, as Zikran confirmed: “We haven’t made any offer [to the banks].”

Another issue is the pending establishment of the Regional Public Service Agency, which is expected to play an important role in managing the project’s funding.

“We don’t know yet whether the Technical Management Unit will be developed into the Regional Public Service Agency, or whether the two bodies will operate in conjunction. It depends on Anies’ decision,” said Zikran. He acknowledged that the agency needed to be established as soon as possible.

While the agency is to manage funding, the technical unit is to verify applicant eligibility alongside Bank DKI. The verification process will include background checks on the applicants’ tax and bank data, as well as their census and civil registration.

One of the main concerns was that a clearer mechanism for determining eligibility was needed, since only 780 apartments were being developed.

“Everyone will say, ‘I am more eligible than you are’. Who is to decide, then, if [the applicants] are equally eligible? I’m afraid the decision could be arbitrary,” Aldi said of potential conflicts among applicants of the housing program.

Another concern was the sustainability of the progam, which also targets informal workers, as this depended on the borrower’s ability to fulfill their payment commitments, he added.

“The administration should prioritize their employees, such as sanitation workers, teachers and nurses, because [the administration] will be paying off their loans,” Aldi said, likening this approach to moving the regional budget from the left pocket to the right.

Zikran believed that the zero down payment schemed could be sustained with a low mortgage rate. However, he stressed that a subsidy would risk making the borrowers dependent.

“So what we’re doing here is investing. We lend the money to people at a low rate, which they can repay to be used by other people the following month,” he explained.

While not entirely ignoring the multitude of issues, Zikran remained optimistic that the housing program could stimulate the property market, as well as investors. “We want to create a healthy business climate and the administration aims to stimulate the market,” he said, acknowledging that the private sector was necessary for a sustainable program.

Aldi acknowledged that the program was a pioneering initiative whose sustainability remained uncertain.

“I salute [Anies] for initiating this. It’s good. Whether it will prove to be sustainable or not [...] probably not,” he said.

Meanwhile, urban development and planning expert Yayat Supriatna questioned the housing development project, which fell far short of the 50,000-unit target of the mid-term Jakarta Development Plan. Yayat suggested that Anies shift his focus to suburban areas.

“Jakarta needs to develop the concept of redistribution to lessen its burden. Anies needs to support the development of new hubs in areas outside Jakarta while making use of integrated transportation and infrastructure,” he said.

The zero down payment housing program is just one of the campaign promises Anies needs to fulfill. Although he has been governor for only one year, the people are watching his performance closely and any shortfalls will affect his chances if he decides to run for president in 2024.

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Mindset shift needed to ensure sustainable wheelchair-friendly mobility

Getting around can be difficult for anyone in Jakarta, even for the young and fit, let alone people in wheelchairs.

The 2015 National Intercensal Population Survey by Statistics Indonesia (BPS) found that 246,036 people aged over 10 years old, out of 10.15 million people living in Jakarta, have walking difficulties, whether they need full assistance from others, use mobility aids with assistance, mobility aids without assistance, or without any mobility aids at all.

Maulani Agustiah Rotinsulu, the director of the ASEAN Disability Forum, a platform launched in 2011 to encourage the ratification of conventions in ASEAN subregions and campaign for the fulfillment of rights of the disabled, points out that the ability to move around independently in the city remains a concern, although improvements have been made over the years.

Maulani was referring to the situation in 2012, when disabled athletes were heading to Surakarta, Central Java, for training in preparation for the National Paralympics in Riau, and encountered major access difficulties at Gambir Railway Station, Central Jakarta. The para-athletes, using either wheelchairs or walking aids, found the elevator designated by a sign as “For people with disabilities only” locked.

After several failed attempts at contacting the people responsible for overseeing the elevator, they decided to take the escalator. The result was disasterous. Several of the athletes fell backwards in a heap at the foot of the escalator. They found out later that the station’s management kept the specially designated elevators locked to keep the general public from using them.

Maulani acknowledged that facilities have improved somewhat since then. She cited the special equipment and ramps at the stadiums and other venues used for the Asian Para Games recently. She also pointed out that public places like malls, railway stations and airports now have readily accessible wheelchair-friendly el-evators. In addition, some bus shelters now have ramps, and some low-deck buses are available. There are also pelican crossings with button-controlled pedestrian lights at intersections.

However, she said, this is not nearly enough. Services and mobility access for the disabled remains poor in some parts of the city, such as crossings at the Senayan traffic circle and in Tosari ICBC, where wheelchair only elevators are locked because of a “lack of usage”.

“Accessibility is a familiar issue for the disabled as well as the government […] This issue should constantly be put into focus and be voiced at all times so that it won’t be neglected,” Maulani told The Jakarta Post.

Public transportation sevices like Transjakarta have special programs for the disabled. The “Transjakarta Care” program provides free shuttle services that take people with disabilities – especially wheelchair users – to the nearest bus shelter, for those who make a reservation at least one day prior.

“We have listened to people [with disabilities] and they said they don’t want to be taken off their wheelchairs because they feel as if their mobility aids are a part of themselves. Previously, when they wanted to use public transportaion, we had to help them get into one of the ordinary seats,” Transjakarta spokesman Wibowo said, while citing that the buses now accommodate those in wheelchairs.

These improvements were made after the implementation of Law No. 8/2018, which requires central and regional governments to provide accessible facilities for people with disabilities, as well as including disabled people in projects that involve the use of disabled-friendly infrastructure.

As for Jakarta, plans for disabled-friendly infrastructure are included in Provincial Midterm Development Plan No. 1/2018 and in municipal bylaws.

“Some of the construction has been executed by central and outlying regional agencies. It means that there are already funds allocated to improving accessibility for people with disabilities,” acting head of the Jakarta Transportation Agency, Sigit Wijatmoko, said.

Maulani, however, said these improvements fell short of the ongoing needs of the disabled. She expressed concern over the fact that the organizers of the 2018 Asian Para Games intended to dismantle the disabled-friendly lifts at the Gelora Bung Karno sports complex after the competition ended, instead of adopting a forward-looking mindset.

“By now, we’ve come to realize that the problem does not lie only with infrastructure, but also with attitude; the mindsets of the general public and the government,” Maulani said.

Yayat Supriatna, an urbanist from Trisakti University, also thought that the main roadblock for the attitude change was a lack of inclusiveness.

“The completeness of facilities for the disabled is still far from expected. One of the reasons is because the planners only think of those who are healthy, young and active,” he remarked.

In the long term, Maulani highlighted the importance of informing the general public to change the way they perceive disabled-friendly facilities. She suggested that other people that have trouble with mobility, such as mothers with children in strollers and seniors with limited mobility, should be free to use disabled-friendly toilets and lifts.

She expressed hope that planners and the general public would come to understand that well designed disabled-friendly facilities do not have to be labeled as exclusive. They could be universally designed, which means they could be used by the general public with prioritized courtesy toward parents with toddlers, families with elderly people, as well as the disabled.

All in all, Maulani emphasized the need for a mindset shift to solve the problems.

“Ideally, the attitude should be the priority because no matter how convenient the environment is, without the right attitude, it will be useless,” she said.

Nirwono Joga, another urban expert, is of a similar opinion. He called for efforts toward a “mental revolution” among both government officials and the people on the street.

“Officials and schools should provide early education and raise public awareness to familiarize the public with the issue,” Nirwono said.

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Fight-or-flight: Pramuka Market and songbird survival

The Pramuka Market bustled with activity in the stifling heat of East Jakarta. On a recent Tuesday, the air was filled with songs of thousands of various types of birds, including some protected under Indonesian law.

The stench was overpowering. Fowls and larger birds, including a pair of swans and a rooster pacing restlessly inside its cage, raucously demanded freedom.

Songbirds are popular in Indonesia, influencing breeders and traders to sell protected species of birds to maximize their profits. In contrast, animal rights activists persistently confront the illegal trade, urging the government to shut down notorious bird markets like the Pramuka Market.

Marison Guciano, executive director of animal rights watchdog FLIGHT, said the origin of the birds being sold in Pramuka Market remained “unconfirmed” since the government’s supervision of bird markets in Indonesia had been “weak”.

“[Traders] said their birds were sourced from breeders, but it is still unconfirmed. The government should con-firm it by scrutinizing the breeders they mentioned,” Marison told The Jakarta Post in a recent interview.

He said his organization, in cooperation with the Agriculture Ministry’s quarantine agency and the police, intercepted shipments of at least 300 songbirds at the Bakauheni Port in Lampung in September. These birds, which included protected Oriental white-eyes and sunbirds, were destined for sale in Cirebon, West Java.

“If these smuggled birds had arrived at the destination market, it would have been really difficult for us to save and free them back into their natural habitat because the government’s supervision in bird markets is weak,” Marison said, adding that the island of Java is the largest market for the illicit bird trade.

In 2014, an international wildlife trade monitoring network, TRAFFIC, held a three-day survey in Pramuka Market, which determined that as many as 16,160 birds of 180 species were being sold. The Cambridge-based non-governmental organization reported that Pramuka Market — in operation since 1976 — is the largest bird market, along with two other major bird markets on Jl. Barito, South Jakarta, and in Jatinegara, East Jakarta. In total, there were 19,036 birds

In its report, TRAFFIC also pointed out that eight of the species were assessed as “threatened” by the International Union for Conservation of Nature (IUCN).

In July this year, the Environment and Forestry Ministry issued Ministerial Decree No. 20/2018, updating the list of protected species from 677 to 919 after 19 years.

Animal rights activists and conservationists reacted positively, while songbird owners and breeders urged the ministry to revoke the decree or remove four particular songbirds from the updated list: the white-rumped sha-ma, the chestnut-capped thrush, the greater green leafbird and the Javan pied starling.

A coalition of songbird fan groups, called the Indonesian Songbird Fan Club, said bird breeders would lose their livelihoods if the decree was enforced.

“The ministerial decree caused unrest among traders, breeders and songbird lovers,” said Boy, the leader of one of the fan groups in Jakarta, on Aug. 9, as quoted by iNews.com.

Cautious eye: A Javan pied starling for sale in a cage in Pramuka Market. (JP/Dames Alexander Sinaganurses)

The objections of the coalition and other songbird lovers spilled over into the streets and onto the internet with the hashtag #TolakPermenLHK (Reject Ministerial Decree No. 20), motivating the ministry to revise the decree. The ministry then modified their protected birds list to exclude the straw-headed bulbul and the Javan pied starling, both registered as threatened on the IUCN Red List, as well as the white-rumped shama.

The outcry then shifted to animal lovers and activists, who voiced objections to this move.

“The reason why the ministry dropped the three birds from the new list was due to pressure from the breeders. The move was not based on a recommendation by LIPI,“ Marison said, referring to the Indonesian Institute of Sciences.

LIPI did not issue a recommendation until after the birds had been officially removed from the list. It then issued a letter recommending that the birds be returned to the list.

Amir Hamidy, a LIPI scientist who helped draft the initial list, told environmental news portal Mongabay.com that his institution advised protecting these species based on their scientific research that determined their populations in the wild.

The ministry later clarified that the revision was made after it had conducted a socio-economic impact study.

“During the creation of the list, the data was not always taken from the wild; there’s also ex situ data. This became our basis to change the status, as the ex situ bird population is numerous. Ex situ could support in situ,” Indra Exploitasia, the ministry’s director of biodiversity conservation, said in October as quoted by VOA Indonesia.

The ministry also clarified that the law would not be applied retroactively and that there would be a grace period for owners, breeders and traders to register their winged pets.

Marison said that although the government had done its part for biodiver¬sity conservation in the country, more preservation efforts would be necessary.

Whatever people do, the caged birds in the Pramuka Market still sing beauti¬fully despite having been transported in cramped pipes or crates to places thou¬sands of kilometers from their natural habitats to share a cage with dozens of others of their kind.