Overview

Housing represents an important aspect of human life. In many countries and cultures, homeownership represents a major portfolio asset of many households and is thus a major component of wealth. The price of a house is typically higher than annual household income however. This high cost of homeownership means that governments should accommodate the public need in this regard.

According to the Ministry of Public Works and Public Housing, the national housing backlog amounted to a total of 11.4 million houses as of 2016. This data conforms to Indonesia Statistics’ (BPS) finding that 17.42% of households have yet to enjoy access to housing, a figure which corresponds to over 11 million households.[1]