Residents of Indonesia’s capital Jakarta, a megalopolis of 11 million are finding it impossible to climb the property ladder, as space shrinks and prices rise, forcing them to seek faraway homes that come with arduous commutes.
Jakarta is where Indonesia’s growing wealth gap is most evident — with unofficial slum housing sitting below shiny new apartment complexes and skyscrapers.
Less than two-thirds of Jakartans own a home, according to Indonesia’s Central Statistics Bureau, the lowest figure compared to other provinces. The price of a Jakarta house is on average 20 times higher than an employee’s annual salary, a University of Indonesia survey in June found.
Jakartans have resorted to buying a house in neighboring provinces. With limited space available in the cramped capital known for its brutal traffic jams, prices have skyrocketed. Housing complexes are now being built further from the city to meet demand.
To address the housing crisis, the government will require employees from 2027 to contribute three percent of their salaries to a savings fund which they can use for housing. But it has angered Indonesians who think it won’t be enough — or that it could be taken from them by a government many distrusts.
