Habitat for Humanity Indonesia

INDONESIA IS THE WORLD’S LARGEST archipelago with 13,000 islands stretching over hundreds of kilometers along and around the Equator.

In spite of its size, housing is a constant challenge as Indonesia is home to more than 234 million people, making it the fourth most populous nation in the world. Population densities, especially on the main island of Java, are as high as 12,635 per sq. km. Nearly 18 per cent of the population lives below the poverty level. Land shortages and hard-to access credit for housing, particularly in urban areas are major reasons for the amount of sub-standard housing. High land prices and construction costs are also key impediments to improved housing: often land accounts for up to half the total cost of a house.

The United Nations estimates that Indonesia needs 735,000 new housing units a year and to repair 420,000 units annually. According to a study conducted for the World Bank, at least 375,000 of the needed new housing units will be for low-income groups who cannot afford access to formal markets. The UN estimates that 70 to 80 per cent of all housing is built incrementally in the informal sector. Given its size, any serious effort to address the housing problem in Indonesia requires a major change in the policies, organizational structure governing the delivery of shelter and the strategies or approaches.

The occurrence of natural disasters in recent years also increased the urgency for housing. In December 2004, the northern province of Nanggroe Aceh Darussalam on Sumatra Island was devastated by the Indian Ocean Asian tsunami. Less than 18-months later, in May 2006, Yogyakarta, a city in the eastern part of Java, was shaken by a 6.3 magnitude earthquake. And, in February 2007, major flooding in the capital Jakarta damaged thousands of houses.

Habitat for Humanity Indonesia built its first houses in 1999 in Yogyakarta and operates in both rural and urban areas throughout the country. Its affiliates are in Jakarta, Bandung, Yogyakarta, Surabaya in Java island; Manado in North Sulawesi, and Batam in Riau.

HFH Indonesia has started a Habitat Resource Center HRC in Aceh, and others are in the works for Jakarta and Yogyakarta. The HRCs broaden the reach of Habitat’s programs by providing construction services, training and other expertise to Habitat’s partner organizations and families, helping them to leverage and deliver effective housing programs.

Habitat uses “Building in Stages” and “Save & Build” concepts. The former enables homeowners to start with building a basic “core” house based on their financial means. The core first stage home normally measures 21 sq. m. The “Save & Build” housing microfinance model enables home partners to have their own more quickly as they benefit from the combined financial of their savings group. It also establishes a saving culture in the community. The average monthly repayment for both types is approximately US$20.

Houses use cement slab foundations and are made from concrete blocks and plywood with wood frames and clay tiles for roofs. It takes between 14 and 21 days to build a house.

HABITAT HIGHLIGHTS

• In June 2007, HFH Indonesia marked four milestones: completed 1,500th house built in Meulaboh under the tsunami reconstruction program; finished repairs of 1,000 houses for flood-affected families in Jakarta; celebrated 1,000 houses built for earthquake-affected families in Yogyakarta; marked 300 houses constructed in Batam.

• A local art exhibition featuring local artists in June 2007 celebrated the 480th anniversary of Jakarta with proceeds from the sale of works going to HFH Indonesia’s programs.

• In January 2007, Indonesia’s Sun Motor committed to support HFH Indonesia’s programs by donating 100,000 rupiah (about US$10) each time one of Sun’s three new models of Piaggio two-wheelers is sold.

• US$233,000 was raised during October 2006’s CEO Power Breakfast organized by HFH Indonesia and JW Marriott Indonesia in Jakarta.

• ABN-AMRO donated one billion rupiah (US$108,600) in March 2006 to build 50 houses under HFH Indonesia’s Adopt-A-Community project in Tembelang district in Bekasi, east of the capital Jakarta.

• JW Marriott Jakarta helped raise funds to build 100 houses and launched 1,000 Houses Campaign”, which reached its target by 2006, 12-months ahead of schedule.

COUNTRY FACTS

Area: 1,919,440 sq. km.

Population: 234.7 million (July 2007 est.)

Capital: Jakarta

Ethnic groups: Javanese 45%,Sundanese 14%, Madurese 7.5%, coastal Malays 7.5%,others 26%

Languages: Bahasa, Dutch, English, and more than 583 languages and dialects

Religions: Islam, 88% Christian,9% Hindu, 2%, other 1%

Updated July 2007

Affiliates in Indonesia