The existence of slum dwellers in urban areas should be considered in designing national housing finance policy in Indonesia. The growth of the slum area is still increasing. Meanwhile, shaping cities without slums has been the target of the national long-term development plan for 2005-2025.

The objective of this research is to recommend the improvement of housing finance policy in order to enhance the access of slum dwellers to housing financial subsidies and support. In doing this research, I use the qualitative method. Methods used in doing data collection include in-depth interviews, semi-structured interviews, observation, and secondary data collection. Data analysis is carried out by using analytic induction and cognitive mapping.

Slum dwellers have low affordability and limited access to decent housing. Indeed, regarding the context of urban justice, slum dwellers have the right to live in decent houses in urban areas. Accordingly, government is expected to facilitate them to get access to housing financial subsidies and support.

National government has designed housing finance regulations intended to assist low-income households to get access to affordable and decent housing. However, some regulations need to be modified concerning the dynamic of social and economic conditions of slum dwellers. Mortgage insurance facilities that have been abandoned should be provided again with a focus on slum dwellers. Housing subsidy delivery through a liquidity facility mechanism needs to accommodate the access of slum dwellers to housing mortgages. The function of the secondary mortgage facility needs to be optimized to overcome financial mismatch in housing mortgages. Housing provident funds should be institutionalized and need to incorporate the income characteristic of slum dwellers.