Acknowledge the terms of the Property Backlog

Acknowledge the terms of the Property Backlog

In the property field known as the backlog. This usually refers to the gap between the number of houses built and people’s demand for these houses.

Of course, if it is not checked, it will become a serious problem where housing or housing is the main need for everyone. Thus, the problem of space in the number of houses must be addressed immediately.

To know this term much more deeply, let’s look at the next article!

What are Backlogs?

Community settlement
Community settlement

Basically, the backlog is the gap between the number of houses available and the demand of people. However, this term has a different meaning, at least that is defined by the Ministry of PUPR and BPS.

From the perspective of the Ministry of PUPR, the backlog of houses is more for houses that are uninhabitable. Therefore, the PUPR Ministry is trying to reduce the number of people living in uninhabitable houses.

This means that as long as people live in a house that is livable, it is not a problem, even if the house is a rental house.

However, BPS has a different view where what is meant by back log refers to the owned house.

This means that even if the person lives in a habitable house but is still renting, this is still considered an arrestee.

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In this way, the number of backlogs in Indonesia is still relatively high because there are still many people who do not have private residences.

Also read: How to get a land certificate through PPAT

Causes of Backlog in Housing

Illustration of the house
Illustration of the house

Cited by lacrymosemedia, the need for houses in Indonesia every year ranges from 820,000 to 1 million houses. However, about 40 percent of this fulfillment can be done by the private sector and the remaining 20 percent by the government.

This leaves the remaining 40 percent uncompleted or what is known as the housing backlog.

The factor that most influences this is the growing population in Indonesia so the demand for houses is also growing. However, this is not comparable to the ability to provide housing or houses.

Also, the factor influencing this gap problem is the lack of housing supply for Low Income Communities (MBR).

Finally they are willing to rent a house to meet their needs. Even among the houses they are not really habitable.

Other factors that could increase this gap include:

  • The number of houses that are currently uninhabitable, such as being inhabited by many people, damaged, or close to being destroyed.
  • Number of families without a private home.
  • Homeless

Total Housing Backlog in Indonesia

According to BPS data, the number of homeowners in Indonesia in 2021 will reach 81.08 percent. This indicates that the remainder is included in the backlog.

Meanwhile, PUPR data in 2015 showed that about 11.4 million houses were backlogged.

Although the current needs of the Indonesian people for houses each year have reached 13.5 million units. However, only about 300 thousand to 400 thousand housing construction units can be realized annually.

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Therefore, there are still many gaps or gaps between the demand for houses and the ability of the government and developers to build these houses.

In this way, currently the Government of Indonesia has committed to reduce the number of backlogs in Indonesia to reach 5 million in 2024.

How to deal with it?

As the data above shows, more people in Indonesia need housing. Therefore, the government needs and has implemented several strategies to overcome this problem, including:

Housing Structures and Subsidies

Through the APBN, the government provides housing and subsidies with the FLPP KPR scheme or the Housing Finance Liquidity Facility and other subsidies.

Meanwhile, the construction of houses carried out by private developers ​​​​for subsidy schemes has been running as much as 30% for MBR and 50% for non-MBR.

Therefore, the government is intensifying the MBR housing development program to reduce this gap.

One million houses programme

the one million house program
That is also a home program (Photo: medcom.id)

One program that is quite popular is the one million house program. This program was implemented in 2015-2019 where the government wanted to build as many houses as possible to reduce the number of housing backlogs.

In practice, the government built rental apartments (rusunawa), self-help houses and special houses. Funding comes from the APBN and the APBD.

The implementation of the program of one million houses in total contributed to about 20% of the special objective, namely low-income communities (MBR).

Community Based Housing Development

Specifically for this program, the government is targeting certain professional communities as well as those who have never received a housing subsidy program before.

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This program is the result of the collaboration between the Ministry of PUPR, local developers, local governments and banks.

Up to 10,000 houses have been built under this program by 2020.

Conclusions

The recovery of housing or the distance between the demand and the availability of housing is a problem that must be addressed urgently. In addition, low-income people (MBR) are the main target of efforts to address the housing gap in Indonesia.

This is a brief explanation of the backlog that you need to know. I hope this article is helpful!