Balancing Act: Promoting Affordable Housing in Jakarta’s Transit-Oriented Development through Public-Private Partnership
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Abstract
Jakarta, Indonesia, is in crisis due to the need for affordable housing. Transit-oriented developments (TODs) could effectively address the country’s housing shortage as TODs emerge as promising solutions for integrating public transport and residential functions. Furthermore, public-private partnerships (PPPs) could be the key to bridging the funding gap and providing the necessary expertise for large-scale developments. However, the following question remains: How can PPPs provide affordable housing, which is a critical component of Jakarta’s TOD areas, when land prices are so high? The present study used a particular method to explore the potential benefits and constraints of PPPs in promoting affordable housing in Jakarta’s TOD areas and examining key stakeholders’ perspectives. This study employed a mixed-methods approach, including a survey of the young mid-lower group, in-depth interviews with private developers and focused group discussions (FGDs) on the possibility of utilising PPPs. The study also reviewed housing policy documents and reports related to TODs and PPPs in Jakarta and successful PPPs for affordable housing projects in other countries. The study findings highlighted the challenges of utilising PPPs to establish affordable housing in TOD areas and revealed possible ways to address those issues, such as by taking advantage of reasonably priced land in the suburbs, balancing PPP profitability with affordability goals and fostering accountable partnerships. These insights are highlighted for understanding the complexities of PPP-driven affordable housing in TOD areas. The findings also indicated that effective PPPs in Jakarta’s TOD areas should prioritise affordable housing for the upper-middle class. Meanwhile, to support the lower classes in the city, PPPs must use state-owned land or a conversion strategy through housing development in periphery TOD areas.
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