20 March 2017
Spire supports research on Indonesian low-cost housing program
With a USD450 million loan from World Bank, the Indonesian government’s efforts to provide more affordable housing for low-income families has received a big boost. Spire Research and Consulting supported the feasibility study for this World Bank program, working with Indonesia’s Ministry of Public Works and Housing (MENPUPERA).
Spire helped execute a product concept test for the program to build affordable housing, working with Deloitte Indonesia. This was done via Focus Group Discussions (FGDs) across 4 cities.
The findings revealed that Indonesia faces substantial demand for one million new housing units annually. Moreover, 29 million people (out of 250 million) of Indonesia’s urban population still live in slums.
A portion of the World Bank’s loan will go to support the government’s housing assistance program (BSPS) and community-based housing development program (P2BPK) to target low-income homeowners.
At the same time, Indonesia also offers the FLPP scheme – a subsidized facility for mortgage liquidity for mortgagors at lower interest rate. The Indonesian government has expressed its willingness to set aside USD2.2 billion – 2.3% of total central government’s budget – for public facilities and affordable housing in 2017.
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