Private sector-led development and housing provision: the case of South Tangerang, Indonesia / Surya Gunanta Tarigan, Dwi Siswi Hariyani and Dirga Daniel

In the last few decades, South Tangerang City has transformed into a supporting city for Jakarta. It has become a popular choice for professionals working in Jakarta who are looking for a more affordable and environmentally friendly residential option. The private sector has been a dominant actor in the housing construction in South Tangerang. The private sector constructs the vast majority of new housing, which is aimed at middle and upper-income households. The massive development of the private sector in many townships such as Bintaro, Alam Sutera, and BSD City has resulted in South Tangerang having good infrastructure of international standard. However, the private sector's massive land ownership causes significant problems for South Tangerang's city development. The study investigates the phenomenon through in-depth interviews with housing stakeholders, including local governments, private developers, and academics in South Tangerang. Land prices in Indonesia have caused affordability issues in South Tangerang. The study investigates how and at what cost this model of private-sector-led development affects housing provision in South Tangerang. This private-sector-led development may have contributed to the problem of rising land prices, making affordable housing difficult to build. Since 2013, no subsidized housing has been built in the South Tangerang area by a private developer because the land price makes it unfeasible. Besides, local government intervention is also limited because the cost of acquiring land for infrastructure and housing development has become expensive. It raised the question of whether this development model, which has made the private sector the sole determinant of housing prices, can be sustained in the future.