From Shelters for Numbers to Shelters for Welfare: Rectifying the Social Housing Provision Programme in Jakarta

Abstract

ABSTRACT This study examines the relationship between housing satisfaction and low-income tenants’ willingness to pay rental fees in government-owned rental apartments (GORAs), a form of social housing in Indonesia. Despite their sophisticated physical features and affordable rents, GORAs have experienced mounting arrears that burden the provincial maintenance budget. This situation contradicts the assumption that better quality housing will increase housing satisfaction and reduce the amount of rent nonpayment. By examining the situation in one GORA in Jakarta, Indonesia, this study reveals that the well-designed physical features of GORAs do not necessarily increase housing satisfaction, because the prototypical design’s failure to accommodate aspects of the residents’ sociocultural context and the prohibition of adjustments to the units diminish residents’ financial capacity and their social ties. Consequently, their poor level of housing satisfaction contributes to the mounting levels of arrears. This study recommends a comprehensive review of existing housing policy to better accommodate residents’ desired sociocultural activities and their potential means of generating revenue, thereby improving residents’ welfare and potentially reducing the total amount of rent arrears.