Beruflich Dokumente
Kultur Dokumente
Dialog II on FINANCING SLUM UPGRADING 19 Session UN Habitat Governing Council Conference Nairobi, May 07, 2003
th
Back Ground
Population of Indonesia : 210 million people
all growth occurred in urban areas Average annual urban population growth rate between 1990-2000 of 4.6% Urban population increases from 55.1 million (1990) to 86.4 million (2000). Urbanization rate of 40%
of the urban population in 1996 to 16% in 2000. - Low finance affordability. From 60 to 65% of households cannot afford the lowest priced house currently produced in the market. - Almost all of these people are living in informal areas and are experiencing a deterioration in the level of services and infrastructure provided by local government
Lesson Learned
Kampung/Village Improvement Programme
(KIP) The beneficiary include the middle-income population Not to be regarded as sustainable. Top-down planning Limited at addressing the public infrastructure, not land, housing or community development
Local Development in Indonesia (CoBILD) Conventional housing finance mechanism cannot meet the needs of the lower income household. Housing provided in stages, or built incrementally can be affordable Community or collective action can help reduce the price of land and infrastructure
A comprehensive approach to the upgrading of neighborhoods and the improvement of housing and living conditions in poor areas. - The project will use a system of grants and loans. Cities will be provided with matching grant funds for meeting community needs, which may also include contributions by the community in cash or in kind as well as internal cross-subsidies.
Strategy (cont.)
Principle
Participatory; enabling and empowering the community members to participate in and benefit from all aspects of the project Demand-driven; Transparent - allowing all members of the community access to the decision making processes.
Components
- Upgrading
Activities including water supply, sanitation, solid waste, drainage, access roads, open space, environment, income generation and employment. - Capacity Building Training and attitudinal change will be an important component of the strategy to enable and empower communities and cities to engage more actively in participatory processes that address the housing needs of the poor.
Components
- Housing finance
All households will be able to access a series of sequential loans, with community intermediation, for incremental provision and improvement of housing and living conditions, including the purchase of land or improvement of tittle.
needs of the poor will be financed through matching grants - Funding for households will be financed through micro-credit in the form of a series of small, short term, sequential loans available at market rates of interest - The Criteria for the loans are that the applicant is a resident of targeted area.
Financial Institutions - Only upon successful repayment will other members of the community be able to borrow. - Borrowers who repay will be guaranteed second and further loans - Groups may also borrow for income generation activities especially the creation of work facilities.
Conclusion
Combining the housing investments of the
families and government, then governments might reduce their investment per household. Technical skill in the microfinance sector are low. Need more incentive for private sector to involve in the low income housing finance
Thank You