The Importance Of Establishment An Affordable Housing Finance For The Low Income People

Abstract

Recently, Indonesia government develops housing finance scheme to give people access to home ownership. However, in the implementation, the scheme has largely excluded poor people from the system. To analyze the importance of housing finance system for low income people, the city of Semarang in Indonesia was selected as a case study area. The local government implemented the One Million Housing Policy by giving a subsidy, providing rental housing either with single unit, attached house or multi storey construction, and a very simple housing construction (RSS). These interventions are made accessible for the poor, and the rental fee is calculated to reflect the affordability pattern of Semarang citizens. This was done by grouping people based on income level, and giving assistance on a case per case basis.