Open AccessDeveloping affordable housing for low-income households in developing countries using participative payment
Author(s) -
Mohammed Ali Berawi,
R. Aulidtyo,
Perdana Miraj,
Gunawan Gunawan
Publication year - 2019
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/650/1/012013
Subject(s) - business , payment , affordable housing , attractiveness , renting , capital (architecture) , debt , developing country , finance , economic growth , economics , engineering , geography , psychology , civil engineering , archaeology , psychoanalysis
The government of Indonesia attempt to increase the standard living of the low-income households by providing affordable housing. The concept is implemented in Jakarta-the capital city of Indonesia as the pilot project in the past years. However, the operation faces several obstacles, and one of them is the debt of rental fees from the households from 2013 to 2017 about US$ 2,013,888.89 for all affordable housing exist in Jakarta. This research attempt to evaluate the potential business that can be implemented on the site to improve the payment capability from users. Marunda Affordable Housing in North Jakarta and Cipinang Besar Selatan in East Jakarta will be used as the case studies. Pairwise comparison and life-cycle cost approach are adopted to achieve the targeted objectives. The result shows a different type of business that can be applied to both case studies. One is related to marine processing industry, while the other is suitable with the manufacturing industry. Both business proposals generate a significant rate of return above minimum attractiveness rate of return in the related industry.