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14 Causes of Housing Shortage in Jakarta : The Main Obstacles

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In the previous article, we talked about the main problem that can be found in the capital city of Indonesia, which is the traffic congestion or traffic jam. It’s really troublesome for many people around the city, especially for the morning productive routine. However, the congestion is not the only problem this city has.


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You know, Jakarta city has most people around the country. The direct effect from this condition is the city’s health that may be worsened by the behavior of its people. Another effect from this massive population other than that is the housing shortage, which is not easy to solve the problem. Let’s talk about some causes of housing shortage in Jakarta.

1 – Overpopulation

The first and the main reason in some causes of housing shortage in Jakarta is overpopulation phenomenon. You know, the ultimate problem of the housing shortage situation actually comes from the humans. Jakarta, just like any other capital city in any country around the globe is a favorable city, for everyone.

Because it’s the central for basically everything, many people are interested to visit or even spend their days in the city of Jakarta. One of the reasons is the economic factor. The wages or fee is way better in this city. Of course, many people love money. Many people come to the city each year, making it the highest populated area in the country.

2 – There’s no land anymore

Jakarta is the capital of Indonesia for too long. Since the day of Independence until this year of 2019, it still has that status as the center for both governmental and business purposes. However, the condition where people from outside are coming to Jakarta makes the condition worse, especially for the housing.

You know, when you build a real estate, or any other business related to property, you will need a grasp of land in your inventory. Because of the people came to Jakarta and bought some of the lands, it becomes more clear that the housing shortage is not avoidable. It’s a sure thing because of the condition.

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3 – Urbanization

In Indonesia, there’s a belief that people in villages always have. This thinking tells us that any man should go to better place (bigger city or more improved are than their own village) for better fortune for both himself and his family. This culture is called as “Merantau”. Usually, they will aim for way bigger city, like Surabaya or maybe Jakarta.

With that thought in mind, the waves of people coming from villages around Java island and the other islands in general couldn’t be barricaded. People want a better fortune, they want a better economy. Any person wants something better. Even though it’s not a wrong thing, but once it has done massively, it may cause problems in the future.

4 – Indonesian’s belief  “Many kids bring wealth”

As mentioned on the first point above, the main problem of this so-called Housing Shortage is the population, which is abundant. In Jakarta, we can expect the highest number of population because of its status as the capital city of Indonesia. It’s a sure thing. But there’s a root problem under it all.

The problem is actually the belief of so many people in this country. Religiously it’s correct, but in reality it may become a total different thing. Some of the Indonesian people believe that having many kids may bring better fortune, especially in wealth. If you want to connect it with logic, don’t be.

5 – The condition of the city is not quite good anymore

Jakarta is standing for long years, becoming one great city in the country with all you can get. But on the other side of the coin, there are some causes of housing shortage in Jakarta, like the city’s condition in general. Yes, Jakarta is the capital city, the biggest city of all cities around.

But it doesn’t mean the best. Jakarta can be considered to be a non-healthy city, following how the people of Jakarta behave every day (still dumping the trash in rivers, etc.). When a bad weather comes, the city will be in trouble in only a matter of time. This challenge provides harder difficulty for housing.

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6 – The price is expensive

As you can expect from a capital city, the price for everything is of course way higher than usual. The price of foods, equipment for offices, and even a house, which is really important is also getting higher every day. To buy a house, it can be pretty challenging because you will need a lot of cash on you.

Jakarta has this uniqueness in the economic status, making it the most expensive but also stressful city at the same time.

7 – Jakarta is the capital of Indonesia

Yes, we all know that Jakarta is the capital of Indonesia. The housing shortage problems arise from the higher price for property, as mentioned on the earlier point. This is directly related to the status of Jakarta city, the capital for the country. Because of its status, the government depends a lot from it to be a central for everything.

It’s central for economy. On the other side, Jakarta is also central for government institution. Because of that, it’s not a new thing that it’s considered expensive to live in Jakarta.

8 – Expensive way of life

The life of people in such a big city like Jakarta may seem to be totally different than those who live in smaller cities or areas like Solo or Jombang. You can see the bold constrast in between. People in the Jakarta, tend to live based on their surroundings, which is expensive, fancy, and also modern.

This way of life may increase the rate of consumers and affected inflation rate at a long period. In the end, it can cause housing shortage problem also.

9 – Many would choose prestige over needs

Another problem in some causes of housing shortage in Jakarta is the mindset of the people. Of course, we do understand that this thought is not in the mind of all people in general, only some. But even though only some percentage of total population did it, it can also cause housing shortage based on some factors.

One example of those is supply of demand. With the high economy, many would prefer to buy expensive housing. In general, because the demand is high, the price rate also follows.

10 – Modern lifestyle

Still related to way of life of people in Jakarta, the modernization is the thing that can’t be separated from them. Living in such an advanced city, we should learn that we need to be wise when living in such place. If not, the modern lifestyle could cause destructive effects to our life.

For example, the use of money for unused consumer products may rise the economy and inflation and the same time. The rate for housing also greatly increased because of this condition.

11 – The lack of housebuilding

Of course, the other main reason for housing shortage is lack of housing. The demand of many people who want to live in a better place, better housing, nice place to stay in Jakarta cannot be fulfilled because of the lack of supply. This problem alone can’t be handed simply, it can be more complicated.

The lack of housing is the result of many other problems that can make it harder to provide the “products” to potential customers.

12 – It can be hard to build a house

However, as mentioned above, building a house or any other property business from scratch is not that simple. They need to look for the environment, demand, and also the capability of corporation to make sets of housing unit. They can also have some problems with funds, which can be troublesome.

If they happen to have a few funds, they need to look for another alternative, investors.

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13 – Investor aspects

Investor is holding the key of success of a company. Many chose to become public companies in order to get the transfer of funds from their investors. With the funds coming in, they can start to make their project to become a reality. And even the housing project is desperate needs it.

However, there are also some important aspects that investors always care for. If a company lacks one of them, the projects, including housing project can be abandoned.

14 – Land legality problems

And the last one in the article of some causes of housing shortage in Jakarta is about legality. If you want to own a house, you need to pass certain administrative ways to make your land and your house legal. This is important when somebody wants to claim your land, you can just show legal proof of ownership.

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