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Upgrading Housing Settlement for the Urban Poor in Indonesia: An Analysis of the Kampung Deret Program

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Metropolitan Governance in Asia and the Pacific Rim

Abstract

Indonesia’s formal housing policies—self-help housing, public housing, and cross-subsidization—have not adequately addressed housing provision for the urban poor. Most poor residents of Indonesian cities live in spontaneous informal settlements referred to as kampungs. Low-income housing markets in Indonesia are far beyond the reach of kampung residents in Jakarta and other Indonesian cities. After the fall of the New Order regime in May 1998, the Indonesian system of government became more decentralized and transparent. The new Housing and Settlement Areas Law 1/2011 authorized the local governments to provide housing for low-income households and to upgrade slums. The new Fiscal Decentralization Law 32/2014 granted local government a greater role in funding development programs, including housing provision program for low-income residents. The Kampung Deret Program is a result of the implementation of these two new laws. The program is the first housing program initiated and funded by a local government in Indonesia. This chapter reviews the self-help housing policy, the development of public housing, and the cross-subsidization housing policy, and discusses how the Kampung Deret Program differs from these three Indonesian formal housing policies. The research question of this chapter is: “What main ingredients are important and have more impact on upgrading housing settlements for the urban poor in Indonesian cities?” The chapter concludes by discussing some policy implications from the implementation of the Kampung Deret Program.

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Correspondence to Deden Rukmana .

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Rukmana, D. (2018). Upgrading Housing Settlement for the Urban Poor in Indonesia: An Analysis of the Kampung Deret Program. In: Grant, B., Liu, C., Ye, L. (eds) Metropolitan Governance in Asia and the Pacific Rim. Springer, Singapore. https://doi.org/10.1007/978-981-13-0206-0_5

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