In the early 1970s, the Government of Indonesia introduced a liberal market-oriented housing policy focused on growth-oriented urban development. This new housing policy was based on the privatization of the housing sector and prioritized home ownership, factors that initiated the establishment of Indonesia’s real estate sector. This new liberal policy also negatively impacted housing, particularly in the cities, where the capability to anticipate and prepare for the urbanization process was significantly reduced. In the three following decades, the Indonesian government attempted to overcome the negative impacts of these policies by introducing two strategic programs: one aimed at upgrading housing and settlement and the other at subsidized housing.