Rusun are becoming an alternative housing solution for professionals amid the rising housing prices in urban areas.
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Kompas/Raditya Helabumi
Construction continues on Monday (30/1) at the site of the Pasar Rumput development project in Jakarta. The government’s transit-oriented development plan aims to integrate housing with economic centers and public transportation systems as a public housing solution in urban areas.
JAKARTA, KOMPAS — The development of rusun (mid-rise apartments) for urban residents is expanding. Rusun are becoming an alternative housing solution for professionals amid the rising housing prices in urban areas.
A 2017 study by the Office of the Coordinating Economic Minister shows that urban centers expanding into the suburbs was among the causes of a steep increase in the price of land. At the same time, urbanization continues unabated. Meanwhile, the government’s efforts to provide land for housing developments has been minimal, with most land leased to private developers.
The Public Works and Public Housing Ministry’s directorate general for housing finance aims to reduce the housing backlog from 11.4 million units in 2017 to 6.8 million units by 2019.
The classic issue in housing and residential policy includes the fact that the national housing and residential area (PKP) policy and strategy is not integrated with the national development program. Other problems are the expensive and limited availability of land and construction materials, housing that is unintegrated with public transportation infrastructure and costly permits.
Panangian Simanungkalit from the Panangian School of Property said on Tuesday (30/1) that some of the land in Jakarta and other big cities were under the control of developers who were motivated by gaining profit. Such developers chose to construct property that gave higher returns, for example, luxury apartments for the high-income segment rather than rusun for middle- and lower-income households. On the other hand, the government did not undertake mass development of basic apartments for either rent or purchase.
“Young people who have just entered the workforce will find it difficult to find housing in Jakarta. It is not just buying that is difficult, but also renting,” he said.
Renting an apartment, Panangian said, was not cheap. Kompas observed that the lowest rent for an apartment or a rusun for middle- and lower-income households in Jakarta’s suburbs was Rp 30 million per year. Meanwhile, the lowest annual rent for apartments near the city center was around Rp 75 million, specifically for studio apartments.
Integrated housing
The government is pushing for the development of rusun that are integrated with mass transportation, or transit-oriented development (TOD). The TOD is expected to drive the efficient use of land for housing development and be a solution to the movement of people within cities.
Director general for housing provision Khalawi at the Public Works and Public Housing Ministry said the TOD concept had been implemented in major cities across the world to manage urban development and shift it to the suburbs. “Big cities in Indonesia should have already adopted this concept,” Khalawi said.
He said TOD with vertical housing matched the need of the current generation, who prefer to live in apartments or rusun.
Greater Jakarta Transportation Authority head Bambang Prihantono said the inhabitants of TOD housing can conduct daily activities without a private vehicle. This conformed to the behavior of the millennial generation, who often rents apartments and relies on ride-hailing transportation services.
In Surabaya, East Java, residents have a high preference for living in rusunawa (basic apartments). Surabaya Mayor Tri Rismaharini said the city administration currently owned are 21 rusun comprising 4,017 units that had been built using the regional budget.
“As of 2018, there are 4,000 people are on the waiting list for renting rusun. The waiting list has existed since 2014,” said Risma.
Yoerina Dwi Octora, 27, one such residents seeking to rent a rusun, said she had registered two years ago. The private employee said that in renting a rusun, she hoped to be able to save money to buy a house.
In Banyuwangi, the rental rusunawa that was inaugurated on Dec. 28, 2017 was designed for low-income households. Banyuwangi Regent Abdullah Azwar Anas said the rusunawa was developed in cooperation between the central and local governments.
Rental rusunawa has become the top housing choice among the public, as renting an apartment is much cheaper than buying a house.
