Indonesia Shifts Slum Upgrading Strategy to Focus on Economic Empowerment
Jakarta – Indonesia is adopting a more integrated approach to slum upgrading, moving beyond purely physical improvements to prioritize economic empowerment programs for residents. Housing and Settlement Areas Minister Maruarar Sirait announced the shift, emphasizing that sustainable solutions require addressing both infrastructure and livelihoods.
The Demand for a Holistic Approach
Minister Sirait highlighted that past efforts focused solely on physical upgrades often proved unsustainable. “We have been too focused on physically upgrading slum areas without improving residents’ living standards, which allows them to revert to slum conditions within three to four years,” he stated in a recent statement. The new strategy aims to ensure residents can maintain improved housing and build better lives.
Pilot Programs in Jambi and Central Sulawesi
The initiative will initially be implemented in the provinces of Jambi and Central Sulawesi. Local governments have been instructed to assess and identify slum areas suitable for the new intervention model. This will be supported by the Self-Help Housing Stimulus program and economic empowerment measures facilitated by state-owned enterprises PT Permodalan Nasional Madani (PNM) and PT Sarana Multigriya Finansial (SMF).
Housing Stimulus Program and Data Verification
The government is currently reviewing approximately four million proposals for the housing stimulus program, with a current quota of 400,000 recipients. Minister Sirait stressed the importance of data accuracy in distributing aid. “We have received around four million proposals for the program, while the current quota stands at 400 thousand. It is crucial that the assistance be distributed strictly based on verified data to ensure fairness and transparency,” he said.
Collaboration is Key
Successful slum upgrading, according to Minister Sirait, requires collaboration between the central government, regional administrations, the private sector, and local communities. He recently discussed the plan with governors Anwar Hafid of Central Sulawesi and Al Haris of Jambi, as well as several district heads in Jambi, receiving their support for the comprehensive strategy.
Menteng Area Transformation in Jakarta
In Jakarta, plans are underway to transform the Menteng area into a thematic zone, potentially a culinary village, in 2026. Minister of Housing and Spatial Planning (PKP) Maruarar Sirait plans to collaborate with the DKI Jakarta Provincial Government on this project. Before implementation, dialogue with residents will be conducted to ensure community agreement and sustainable development. The Ministry is already undertaking renovations in Menteng Village through community cooperation, with 70% progress on two houses expected to be completed by mid-January 2026. Plans include renovating approximately 50 houses without utilizing the state budget, leveraging collaboration with organizations like the Indonesian Architects Association (IAI) for design contributions.
Leveraging Seized Lands and Private Sector Involvement
Minister Sirait also intends to utilize seized lands from the Attorney General’s Office to accelerate housing procurement. he is seeking collaboration with business owners, even offering to contribute 2.5 hectares of his own land in Tangerang, Banten, for the 3 Million Homes Program encouraged by President Prabowo Subianto. This land will be used to build housing for low-income communities, with potential allocation for military personnel, civil servants, and teachers.