Urbanization is not delivering economic growth benefits – housing is an entry point. Indonesia is rapidly urbanizing with a young population that will demand housing. The majority of housing (~80%) in Indonesia is incremental & self-built. Affordability for housing is declining, especially for low-income groups. Headship rates from 2001-2007 indicate a slowdown in household formation. Constraints to the housing market relate to land, access to financing & targeting of subsidies. What can be done? Leverage Communities and Local Governments in Self-Build Programs. Reform land and permitting regulations. Expand access to finance and explore options targeting low-income households. Improve institutional coordination.