Finding Supply-Demand Gap on People Housing Fufillment in Indonesia — An Exploratory Approach

Abstract

Until the end of 2012, Indonesia is experiencing 13.6 million housing backlog units, which had and will create social problems due to mechanism failures in fulfilling people basic housing needs. Although Indonesian government, through ministry of people housing, have already issued several programs, incentives and relaxing regulations, the creation of new housings per annum only reach 20% of the total amount of annual housing demand unit. This mean, with 80% unfulfilled demand per annum, housing backlog figures will grow and stay consistently on alarming rate. On the other hand, from operational point of view, there are challenges related with tremendous housing price increase within the last 10 years, due to (spiking) price increase on constructions materials as well as land price per square meter.This research is focusing both supply sides and demand side on people housing provisions. The supply-sides analyze the business process, governmental documentary support and financing cycles. Meanwhile the demand- sides analyze the patterns of younger generation households in fulfilling their housing needs. This approach is taken in order to find supply-demand gap challenges within Indonesia people housing fulfillment process.We employ several method approach, in conducting the research. Qualitative approaches are conveyed through media analysis on people housing reports and in-depth-interview with regulators (ministry of people housing), Construction Company’s executive, real estate consultant, housing mortgage providers as well as local government. Meanwhile, we also analyzed nation wide newspaper surveys on housing fulfillment, that enhanced with in depth interview with younger household with age range 25-35 years old.From the initial result, lacks of coordination and cooperation within housing provision stakeholders are strongly demonstrated. Leadership and rigor action-strategy for stakeholders are required in order to tackle the housing provisions mess in Indonesia.