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Jakarta Post

Subsidizing urban rent, like public transport, vital

  • Marco Kusumawijaya and Muhammad Zul Qisthi

Jakarta   /   Sat, June 22 2019   /  01:22 am

The country’s housing programs have never been successful, even almost 70 years after the Housing Congress in 1950. During the congress, one of the founding fathers, Muhammad Hatta, set a target of 40 years to adequately house all Indonesians. Yet, housing affordability in the country’s big cities is at a critical stage. Reports reveal that with the continuous rise in house prices, millennials will never be able to afford adequate housing. Most people cannot afford to live near their workplaces in the cities. Institutional commitment has also faltered from a full separate ministry to three directorates general within a larger Public Works and Housing Ministry.House prices always rise at a higher rate than that of anything else in cities. Housing subsidies logically lead to speculative rises. Imagine a subsidy for car purchases. It would similarly increase vehicle prices. Moreover, wh...