The Housing and Settlement (Perumahan dan Kawasan Permukiman – PKP) Development Forum of Central Java Province serves as a platform to gather public aspirations and provide direction for the development of PKP implementation in Central Java Province. The PKP Forum, established through the Decree of the Head of the Public Housing and Settlement Area Office of Central Java Province No. 75/XII/2021, is chaired by Prof. Dr. Sunarti, S.T., M.T. from the Urban Development Laboratory, Department of Urban and Regional Planning, Faculty of Engineering, UNDIP; with Arief Sugeng Haryanto, S.T., Head of the Housing and Settlement Area Integration Division of the Public Housing and Settlement Area Office of Central Java Province, serving as secretary; and members from related government agencies, PKP Organizer Company Associations, PKP Organizer Professional Associations, Associations of PKP Business Partner Companies, experts in the PKP field, and/or Non-Governmental Organizations.
In 2023, the main issue observed by the PKP Forum was the provision of affordable housing. According to records, since 2020, Central Java Province has faced a backlog of ownership (752,848 units) and occupancy (503,703 units). The government has not yet played an optimal role in the housing finance market for low-income or informal sector households. Government assistance, which is still of a stimulative nature, also requires the beneficiaries’ own capability to contribute. Low-income households are confirmed to be unable to meet these demands and find it difficult to access housing as they are categorized as non-bankable. As a result, many aid programs do not reach their intended targets. People tend to choose conventional bank mortgage financing over Housing Financing Liquidity Facility (FLPP – Fasilitas Likuiditas Pembiayaan Perumahan) because it is considered more affordable. The majority of people, especially non-bankable low-income households, still lack knowledge and understanding of legal housing financing mechanisms.
October 27, 2023 – Coordination meeting for the preparation of a Policy Brief in the PKP sector with keynote speaker Prof. Dr. Sunarti (DURP UNDIP / Head of the PKP Forum), supported by a team from UNDIP including Prof. Dr. Ir. Nany Yuliastuti, MSP. (DURP UNDIP) and Ir. Indriastjario, M.Eng (Department of Architecture UNDIP). Source: PKP Forum of Central Java Province.
In response to PKP issues, the PKP Forum plays a role by providing input to the government on the provision of affordable housing, especially for low-income households (Masyarakat Berpenghasian Rendah – MBR). Each Regional Bank can facilitate land acquisition and house construction. Housing financing also needs to develop alternative schemes and evaluate existing mortgage mechanisms. The central/regional government and state-owned enterprises (BUMN/BUMD) can support this by utilizing government-owned land for affordable housing provision. Lastly, strengthening the implementation of standards forms the foundation for the reliability and orderliness of buildings, ease of licensing, and land administration for subsidized housing.