Financial affordability is determined based on the ability of low-income households -as prospective debtors- to pay the installments of subsidized housing mortgages. Currently, this income is calculated based on a debtor’s income, instead of household income. Therefore, in the future, we plan to calculate it based on household income. Aside from financial affordability, there is also an issue of location affordability. There is still a lot of subsidized housing located far from the workplace in the city center area. Hence, location affordability has not become a priority issue in developing subsidized housing. Furthermore, we must also be concerned with providing adequate housing facilities and infrastructure in order to realize affordable housing as a whole. In Indonesia, the concept of affordability is constrained by:
▪ Lack of low-income household data
▪ The absence of low-income household criteria
▪ Different limits of minimum wage
▪ Different cost of living by province
The government attempts to tackle the shortage of housing for low-income households by subsidizing mortgages for low-cost properties. To help low-income households finance their mortgages, the government is engaged in the construction of low-cost vertical housing, or runaway.