Thomas Rizal, Jayanty Nada Shofa, Jakarta – The government has come under fire for its plans to shrink the already tiny proposed subsidized housing.
Indonesia originally intended to build subsidized houses with a building area of 21 square meters but later mulled over downsizing it to just 18 square meters. This compact house will be built on land that spans 25 square meters, down from the original 60 square meters. The reason? The government hopes that a tinier house will lead to a cheaper price tag, thus making the homes more accessible for the country's poor families.
As of 2023, Indonesia is short 9.9 million housing units – a number that Deputy Housing Minister Fahri Hamzah claimed could swell to 15 million units this year. Such backlogs occur when there is an imbalance in the supply and demand.
On the supply side, Indonesian developers struggle to find land to build a house on, not to mention how difficult getting a development permit can be. At the same time, demand for housing continues to soar as the country becomes increasingly more populated. Countless Indonesian millennials and Gen Zs have lost hope of ever owning their own home.
Housing Minister Maruarar Sirait recently said that the 18-square-meter housing plan was still in discussion but promised that the government would not sacrifice quality just for the sake of size.
"Land prices in the cities continue to rise, but should we give up because of that? No. We'redesign it while making sure it is still livable and attractive," Maruarar said.
However, the government's claims were not enough to dispel public worries.
Urban planning expert Yayat Supriatna feared that living in very small spaces could not only reduce the quality of life but also take a toll on one's health. The subsidized house measuring 18 square meters means that it only provides less than 5 square meters per person. This is way below the government's national minimum standard (SNI), which recommends 9.6 square meters for adults and 4.8 square meters for kids. People will be more prone to stress and pneumonia if their housing lacks proper ventilation, sunlight, and space to move around.
The Jakarta Globe asked office worker Hanah if she was willing to live in these shoebox-sized homes after photos of its mock-ups went viral on social media. She replied with a "no, thank you."
"Perhaps I would if I were to live alone, but imagine living there as a family of three. Wouldn't that be stressful? I can only imagine that I would only be fighting with the family members," the 30-year-old said.
A solution for informal workers
The Indonesian private sector sees the idea as the perfect way to provide housing for the country's informal workers. Southeast Asia's largest economy is home to 84 million informal workers, official statistics showed. These people range from being online ride-hailing drivers to hawkers. When it comes to monthly housing payments, most informal workers can only afford between Rp 500,000 ($30.45) and Rp 700,000, as they typically do not earn a fixed income. Unfortunately, there are only a few property products that fit their budget.
"Such housing can be an alternative for people. The more options there are, the bigger the chance that someone can have a home, especially the informal workers who only earn Rp 3 million a month," Thomas Jusman, a deputy at the country's business lobby Kadin, said.
Despite its size, these tiny homes must not neglect its quality. Everyone deserves proper housing, one that comes with adequate sanitation and lighting systems. Thomas reminded the government to make sure that these homes remain affordable for the workers in the informal sector, such as by setting the monthly installments to just Rp 600,000.
Making it cheaper
Aside from the facilities, the homeownership scheme can be a make-or-break factor in this program. Sri Haryati, a senior official at the Housing Ministry, said that the government was still working on the best possible scheme for the people. They are also looking at the possibility of halving the monthly installment payments from the current Rp 1.2 million to between Rp 600,000 and Rp 700,000.
"Many young people prefer to live close to their activities. That's why we are trying to innovate through a more minimalist subsidized house design so that it can remain affordable, especially in urban areas.... But remember. The [18-square-meter] home is just an alternative, not the only option," Sri said.
As the government works to provide homes for its people, public policy analyst Trubus Rahadiansyah suggested that the government should look at low-cost apartments to address the housing backlog. The government, too, is trying to woo more people into vertical housing. Deputy Minister Hamzah even floated a plan to raise taxes on landed houses so people would turn to flats – a suggestion that Trubus does not agree with.
"I doubt that's a good idea. People now already have to pay high taxes, so let's not add more burden.... It'd be better if we gave some sort of incentive, like making the apartments free for the first year," Trubus said.
Economist Achmad Nur Hidayat also fears that such tax hikes can worsen inequality.
"Those who should be subject to higher taxes are those who have many houses to rent, idle properties that are left empty as speculative instruments, or luxury homes that are used as investment portfolios," Achmad said.
– B-Universe reporters Erfan Ma'ruf, Mita Amalia Hapsari, Muhammad Farhan, and Jayanty Nada Shofa contributed to this story.
Source: https://jakartaglobe.id/news/indonesias-housing-drama-can-you-really-live-in-a-tiny-hom