Indonesia has experienced rapid urbanization and growth of slums. The government has implemented several policies and programs to address this issue: 1. National laws and plans provide the framework for slum upgrading and prevention, focusing on increasing affordable housing, land tenure security, and infrastructure development. 2. Local programs implement slum upgrading through community-driven initiatives like the National Program for Community Empowerment and vertical housing developments that provide core facilities. 3. Efforts are made to build capacity, provide access to financing, and standardize data on slums, but challenges remain around land issues, economic opportunities, and keeping pace with slum growth.

1. INDONESIA REPORT: SLUM
UPGRADING POLICIES AND
PROGRAMS
Prepared by the Delegation of the
Republic of Indonesia for the
Regional Meeting for Slum Upgrading Working
Group, APMCHUD
Tehran, July 2-4, 2012

2. Outline of Presentation
1. About Indonesia
2. Governance, urban planning and policy
3. Slum condition and shelter policy
4. Slum upgrading at local level
o Pekalongan
o Surabaya
o Solo
5. Future directions and prospects

3. 1 | ABOUT INDONESIA
Facts on Indonesia
Demography

5. • Area: 1,904,569 km2
• 33 provinces
• 98 cities
• 399 regencies
• Archipelago
• Climate: tropical
• Ring of fire – high
frequency of natural
disasters –
earthquake, tsunami,
volcano eruption
• 60% population reside
in Java Island

6. Demography
1971 1980 1990 2000 2010 2011
Population
(in thousands)
119.208 147.490 179.378 206.264 237.556 259.940
Human
Development
Index
0.378 0.471 0.480 0.543 0.613 0.617
Life
expectancy (%)
48.25 54.44 61.56 65.7 68.9 69.4
Literacy rate (%) 57.65 67.31 81.52 87.85 92.91 92.2
Urban Population
(%)
22.30 30.90 42.00 49.79

7. GDP
• In 2006, GDP of Indonesia (nominal) was approximately $364,239 and
ranked 21 among 181 countries in the world based on World Economic
Outlook from International Monetary Fund (IMF) in 2007.

8. Poverty Level and Poverty Gap Level
Poverty Level
Poverty Gap Level

9.  40% of the total population in 2000 (86 million) resided
in urban area. It increased to 43% in 2005 (105.87
million). By 2008 more than 50% of the total population
live in urban area.
 118 million people live in rural areas
 Urban growth rate was 3.70% in 2005 and 4.20% in 2010
 17.5% population (35.10 million) live below poverty line
(BPS 2005) and decreasing by 16.58% by the year 2007.
 52% poor have no access to clean water
 44% without proper sanitation
Urbanization

10. Housing Problems in Indonesia
In 2009, 4.8 million housing units in poor condition.
Slum area in 2009 amounted to 57,800 hectares spread over 10,065 locations
has grown to 59,000 ha in 2010.
Assuming that the precentage growth of slum area is approximately 1.37%
per annum, the slum area will increase 71,860 ha in 2025.
Backlog of 13.6 million units
in 2010, increased from 5.8 million
units in 2004.
Assessment Year 2010:
11.5% dirt floor,
9.87% nonpermanent walled and
3.45% using palm fiber / other.

11. Challenges of Slums
The Growth
Rate of Slums
= 760 Ha/year
Need for Slum Upgrading
Programs
= 1,216 billion USD /Year
1. Rapid growth of slum cannot be accommodated with slum upgrading program provided by
the government;
2. Land use competition between housing supply and demand causing a group of marginalized
communities;
3. Increasing frequency of floods and fires, potential escalation for social conflict and insecurity,
also declining quality of public/community health who lives in slums;
4. Decline in the quality of infrastructure services of housing and settlement areas;
5. Limited access for low income people to banking institutions in addition to have housing
credits for a decent house;
6. Community empowerment programs are still not optimally implemented in slum upgrading
programs.

12. Timeline of Slum Upgrading Policy Development

13. Problem Areas Pertaining to Slum Upgrading
Land Social Finance
Finding relatively unoccupied
and affordable land suitable for
relocating slum community
Land rights and insecurity of
land tenure
Land acquisition
Access to land
1
Insecure and unstable income
Access to finance
Limited governmentbudget
2
Gaining community commitment
Access to participationin slum
upgrading programs
Developmentof community
awareness and trust
3
Informal sector economy

14. 2 | GOVERNANCE, URBAN
PLANNING AND POLICY
Governance Structure
Urban Planning
National Development Strategies

15. Government Structure
Constitution 1945
Legislative Executive Judicative
People’s Consultative Assembly
(MPR)
Financial
Supervision
Agency (BPK)
House of
Representative/
Parliament(DPR)
President and
Vice President
Supreme Advisory
Council (DPA)
Supreme
Court (MA)
Minsitries Non-Departmental
Agencies
Judiciary
Agencies
Governor
Regent/Mayor
Regional House of Representatives
First Level (DPRD Tk. I)
Regional House of Representatives
Second Level (DPRD Tk. II)

16. National Planning System (Law no.25/2004)
National Middle
Term Plan
(RPJMN)
Government
Work Plan
(RKP)
Ministries Strategic
Plan
(Renstra)
Ministries
Work Plan
(Renja)
Government Budget
Expenditure (APBN)
Details of Government
Budget Expenditure
National Long
Term Plan
(RPJPN)
Draft of Government
Budget Expenditure
(RAPBN)
Ministries Work Plan
and Budget
(RKA-KL)
(guiding) (describing)
(referring)
Regional Working
Unit Strategic Plan
(Renstra SKPD)
Regional Working
Unit Work Plan
(RKP)
Regional
MiddleTerm Plan
(RPJMD)
Local Government
Work Plan (RKPD)
Details of Regional
Budget Expenditure
Regional
Budget
Expenditure
Regional Working Unit
Work and Budget plan
(RKA-SKPD)
Draft of Regional
Budget Expenditure
(RAPBD)
(referring)
Regional Long
Term Plan
(RPJPD)
(describing)
General
Budgeting
(KUA)
(referring) (concerning) (Regional Planning Meeting/MUSRENBANGDA)
National
Level
Regional
Level
Planning Budgetting
(detailing)
(formulating)
(formulating)
(detailing)
(guiding)
(guiding)(guiding)
(guiding)
(guiding)
(guiding)
(guiding)
(guiding)
(guiding)

17. Annual Planning Cycle (Ministry Level)
Budget
Platform
Indicative
Trilateral
meeting
National
Meeting on
Development
Planning
Parliament Discussion
Budget
Platform Review on
Ministries
Work Plan
and Budget –
Budget
Platform
Budget
Alocation
Review on
Ministries
Work Plan and
Budget –
Budget
Alocation
list contents of
budgetary
accomplishments
Government
Work Plan
Government Work Plan Drafting Government Work Plan and Budgetting Drafting
Monitoring and Evaluation
Monthly Reports Yearly Reports
Presidential
Instruction Report
No. 3/2010
Quarterly Report
(Governmental
Regulation No.
39/2006)
Government Agencies
Performance Accountability Report
(Presidential Instruction
No.7/1999)
Institution Accounting
Systems (Regulation of
Minister of Finance No.
171/PMK.05/2007)

18. National Development Strategies
 Operationalization Scenario Of Housing And Settlement Development 2005-2025

19. National Development Strategies
 Law No.1/2011 on Housing and Settlement
PART VIII
Prevention and Quality Improvement of Slum Housing and Slum
Settlements
Prevention Quality improvement
Supervision Control
Community
Development
Policies and Programs
Restoration Renewal Resettlement
Policies and Programs

20. National Development Strategies
 Long-term National Development Plan (RPJP) Law no. 17/2007: to meet the people’s
housing needs and with the aim of creating cities without slums, provision of housing
as well as the necessary supporting facilities and infrastructure
00
Implementation of housing development that is sustainable, adequate, decent,
affordable and supported by adequate and quality facilities and infrastructures
managed in a professional, credible, independent, and efficient manner;
Implementation of housing development along with the setting up of supporting self-
sufficient infrastructures and facilities capable of generating financing derived from the
public and capital market, create employment, and promote even distribution in
development;
Construction of housing along with supporting facilities and infrastructures that takes
into account environmental function and balance.
a
b
c

21. National Development Strategies
 National Policy on Housing Development (National Medium-Term Dev’t Plan)
To increase the provision of decent and affordable housings for low income households
To increase the accessibility of low-income households to decent and affordable housing
To improve the quality of human settlement areas through provision of infrastructure, basic facilities
and adequate public utilities, integrated with housing development in order to create cities without
slums
To strengthen security of tenure through facilitating land certification for low-income households, as
well as standardizing building permit process
To enhance the quality of planning and implementation of housing and human settlements
development
To promote primary housing markets and secondary mortgage finance supported by long-term
sustainable financing sources through information dissemination and standardization of mortgages, as
well as development of required regulatory support
a
b
c
d
e
f

22.  Economic Growth : 7,7%
Realizing sustainable urban development
framework to ensure the sustainability of urban
life from the economic, socio-cultural and
environmental
PRO
ENVIRONMENT
PRO GROWTH
PRO JOB PRO POOR
 Unemployment Rate : 5%
 Poverty Rate : 8%
UrbanDevelopment Policy:
Pro-Growth, Pro-Job, Pro-Poor,and Pro-Green
TARGET 2014

23. RTSM
RTM
RTHM
Cluster-1
1.Scholarship
2.Social and Health
Security
Cluster-2
National Program
for Community
Empowerment
(PNPM)
Cluster-3
Economic Credit
Scheme
Cluster-4
1. Affordable Housing Program
2. Affordable Transportation System Program
3. Pro Poor Clean Water Program
4. Affordable Electricity Program
5. Fisheries Livelihood Improvement Program
6. Urban Poor Livelihood Improvement Program
ECONOMIC MASTERPLAN
Improvement of
Community Welfare
and Expansion of
Employment
Opportunities
POVERTY
REDUCTION
RTSM
RTM
RTHM
UrbanDevelopment Policy:
Pro-Growth, Pro-Job, Pro-Poor,and Pro-Green

24. 3. SLUM CONDITIONS AND
SHELTER POLICY
Characteric of Slums
Legislation
Land Use and Land Ownership
Shelter Legislation
Institutional setup
Access to credit
Capacity building and training
Upgrading Initiatives

25. Characteristics of Slums

26. Development Strategy of
Settlements and Urban
Infrastructure (DSSUI)
and
Development Plan of
Strategic Settlement Area (DPSSA)
Development Strategy of Settlements and
Urban Infrastructure(DSSUI) Position in
Indonesia Policy Development
Spatial Direction
Development
Guidelines
Urban Development
Direction
Correlation DSSUI, DPSSA and SPATIAL PLAN
DSSUI and DPSSA are planning products for the
development of urban settlements and
infrastructure created and derivation of Spatial
Planning District/City, describing the needs of the
city on infrastructure for human settlements;
One example of DSSUI product is management of
slum areas, through multi- sectors and
stakeholders involvement;
 The development plan is the product of local
government - local government plays key role to
integrate all relevant strategic sector.
Strategic
Settlements Area
Spatial Plan of City/District DSSUI
DPSSA
DSSUI

27.  Development of
neighbourhood road
 Development of
neighbourhood drainage
system
 Development of
neighbourhood waste
treatment system
 Development of
neighbourhood drinking
water system
Urban Infrastructure Program :
Slum Upgrading Program

28. VERTICAL HOUSING DEVELOPMENT PROGRAM is a
program to reduce slums / squatters settlements,
integrated with others sector development program;
Implementedin the cities / districts that have
Development Strategy of Settlementsand Urban
Infrastructure (DSSUI) and Development Plan of
Strategic Settlement Area (DPSSA)
 Concept : cluster system
Taylor made design type 21 (m2)
prototypedesign type 24 (m2)
Improvementin precast system
 Local governmentprepared the land and supporting
facilities
Karangturi before program
Karangturi after programBambe after program
Muka Kuning after program Gulomantung after program
Urban Infrastructure Program :
Slum Upgrading Program

29. Shelter Facilities in Vertical Housing

30. 1
2
Footpath2
1 Road and Drainage
3
4
5
6
3 Communal Toilet
4 Communal Toilet
River barrier5
Open Space6
River Revitalization with Cultural Heritage
And Public Space Activity Gate
Cikapundung River, Bandung

31. Capacity Building and Training
• Improve database of slum areas: digital mapping, statistics, data collection
(including role of community in database)
• Capacity building of major stakeholders: community organizations, NGOs,
government officials, private sector, community facilitators
• Road map for slum upgrading in each city
• Housing and Neighborhood Development Plan
• Increasing funding resources: Corporate Social Responsibility funds, governing
budget, community funds
• Social-economic empowerment of slum community
• Sharing of best practices: increasing documentation and publication
• Increase the role of universities in capacity building of community facilitators
• Improve land status of slum areas – the Ministry of Housing and National Land
Agency are collaborating on land certification for 30.000 land parcels (target to be
completed by 2014).

32. Capacity Building and Training
• Capacity building of Community Empowerment Organization (LPM) of
Pekalongan City in technology and management of building materials
production, November, 18-19, 2010;
• Capacity building of Community Empowerment Organization (LPM) of
Pekalongan City in applied sanitation technology, solid waste management,
November 29, 2011.
• Training on Applied Technology in Water Treatment and Sanitation for
Community Empowerment Organization (LPM) of Pekalongan City at RC-
CEHUD campus in Bandung, April 19-21, 2011;
• Implementing the International Training on Low-Cost Housing for ASEAN
member countries: Lao, Vietnam, Myanmar and Cambodia at RC-
CEHUD/RIHS campus in Bandung, cooperation with the State Secretariat of
Indonesia, September 28 – October 20, 2011;
• Implementing the MOU with the Islamic Education Center GONTOR in
providing training on community empowerment in Housing provision.
Conducting TOT on students in the PPI Gontor, East Java, September 2011;

33. Access to Credit
• Main institutions providing credit to the poor:
• Banks
• Micro-crediti institutions Cooperatives
• NGOs
• Constraints of MFIs:
• Transparency and accountabality
• Rating system not yet established
• Types of credit available :
• Home-ownership credit (through participating banks) for the low-income
household (first home buyers)
• Home improvement (self-help housing) will be launched end of 2012
through banks. Previous experience with cooperatives
• Construction credit for developers

34. • Given the variety of sectoral programs, PNPM provides an
umbrella framework for all community-driven development
programs in Indonesia.
• By consolidating these programs under a single framework, the
government can:
1. Create a unified design for program delivery,
2. Avoid overlapping and duplication of programs and activities,
3. Formulate a better national targeting for the poorest,
4. Directly transferring funds to villages for better utilization of poverty
reduction efforts.
• To support PNPM and poverty related activities, the
government establishes the PNPM Support Facility (PSF).
• Website www.pnpm-mandiri.org
Upgrading Initiatives:
The National Program for Community Empowerment
(PNPM) Mandiri

35. • National Program for Community Empowerment in Slum
Upgrading:
1.Kampong Improvement Program
2.PNPM Mandiri:
• The Area-based Slum Upgrading Project (PLP2K-BK)
• National Program for Community Empowerment in Urban Areas (P2KP)
Upgrading Initiatives:
The National Program for Community Empowerment (PNPM)

36. Kampong Improvement Program (KIP)
1934
• Kampong
Verbetering
in Jakarta
by Dutch
1969-1999
• Muhammad
Husni
Thamrin
Project
(MHT)
• Achieved
Aga Khan
Award
(1980)
2000-2004
• Kampong
Improvement
Program
• Wolfensohn,
The World
Bank,
declared it as
Global Best
Practice
(2004)
2005
• New
paradigm
of KIP,
called
“Dedicated
Program”
2008
• Integrated
Kampong
Improvement
Program
Upgrading Initiatives:

37. THE AREA-BASED
SLUM UPGRADING PROJECT
(PLP2K-BK)
Upgrading Initiatives

38. FAST GROWING OF URBAN POPULATION AND ITS ACTIVITIES
THAT COULD NOT BE BALANCED BY THE CAPABILITIES OF CITY SERVICE
WOULD INCREASE SLUM AREA
AREA-BASEDSLUM UPGRADING APPROACH
SHOULD BE ABLE TO INTEGRATE MULTI
SECTORS AND TO SUPPORT SUSTAINABLE
DEVELOPMENT
Slum Area tend to emerge the
possibilities of :
1) Illegal settlement;
2) Fire, Floods and landslides
catastrophic;
3) Social conflict:
4) etc
INTEGRATION SLUM AREA
INTO THE
CITY WIDE ACTIVITY SYSTEM
INTEGRATING
MULTI SECTORAL
APPROACH
TRIDAYA APPROACH
(COMMUNITY, ENVIRONMENT
AND ECONOMY)
ADEQUATE INFRASTUCTURE
PROVISION
AREA-BASED
SLUM UPGRADING PROJECT
THE AREA-BASED
SLUM UPGRADING
PROJECT
(PLP2K-BK)
Area-based Slum Upgrading Project Approach

39. Implementation Stage Framework

40. No Activity
Funding
Central
Govt
Province
Govt
City Govt
Non Govt
Institutional
1 Cooperation team of Infrastructure
for Slum Area Upgrading (PLP2K-
BK) forming
V V
2 Technical team of Infrastructure for
Slum Area Upgrading (PLP2K-BK)
forming
V V
3 Community Facilitator (TPM)
facilitation
V
4 Preparation of Area-Based Slum
Upgrading Project Planning
V V
5 CAP Preparation V V
6 DED Preparation V V V
7 Physical stimuli implementation V V V
8 Non physical stimuli implementation V V V V
9 Community empowerment V V V V
Funding Arrangement

41. Central Government
Coordination Team
Ministry of Public Housing,
National Development Planning
Agency, Ministry of Internal
Affairs
Provincial Government
Coordination Team
Provincial Representative
City/ District Government
Coordination Team
City/ District Representative
Cooperation team of
Infrastructure for Slum Area
Upgrading (PLP2K-BK) forming
Another related institution in central
government
Commnunity
Facilitator (Tenaga
Penggerak
Masyarakat))
Technical Team of The Area-Based Slum Upgrading
Project/DED/Supervision
Preparation of Community
Action Plan
Infrastructure for Slum
Area Upgrading (PLP2K-
BK) Plan framing team
The Area-Based Slum
Upgrading Planning
Preparation Team
Notes:
Commandment Link
Coordination Link
Contract Link
Project Team Structure

42. National Program for Community
Empowerment in Urban Areas
(P2KP)
Upgrading Initiatives

43. • To realize a society living in harmony in a safe, orderly, healthy,
productive and sustainable environment
• To achieve sustainable development can be reached from :
(1) Orientation on Behavior Change (attitude),
(2) Orientation on Management by the Communities Themselves (self
community management), and
(3) Orientation on Innovation and Creativity of the Community
(entrepreneurship).
43
Rationale

44. 4
4
Manage “Community
and environmental
Development” on
their own self
INSTITUTIONALIZATION
VALUES AND PRINCIPLES
Community managed to push the
better public service improvement
(Good Governance)
Community
successfully run
and manage the
fund
Local
Government
and
Communities
was used to
build
partnership
recognize the
importance of
institutionalizing
the values ​​and
principles as a
basis for tackling
poverty
NEIGHBOURHOOD
DEVELOPMENT
Work
Packages
LEARNING FROM
COMMUNITY
Regional Coordination Teams Of Poverty Reduction (RCTPR)
& Regional Works Unit (RWU)
REFLECTIONS
OF POVERTY
Poverty Reduction
Program
Effectively
RCTPR and the
stakeholders
success to
formulate
Strategy for
Poverty
Reduction

45. 45
1. Environmental Arrangement Plan Settlements (EAPS) on Urban Village
Planning and Environment Action Plan of Settlement (EAPS) are prepared
in a participatory community with the government;
2. Joint Rules of the development / management of housing and community
disaster response agreed with the government as a joint commitment;
3. Construction management institutions SEE (social, economic and
environmental) that are able to act as a reliable community service center
(community services) to meet the needs and welfare of the people in the
region;
4. Healthy neighborhoods, orderly, harmonious, productive and sustainable
that build by community with government guidance and support from
various stakeholders with a variety of resources.
Results

46. 4. SLUMS AND UPGRADING
AT LOCAL LEVEL
Pekalongan: Cities without Slums Program
Surabaya: Green and Clean Program
Solo: Riverbank Resettlement

47. Pekalongan
Free from Substandard HousesandCityWithout Slum Program
• The aim of Pekalongan Free from Slums by 2010 program is to create a better living environment and
increase the welfare of the poor population of Pekalongan City. The target till 2010 is to increase the
welfare of 31.461 poor households (48.4 % of total number of households in Pekalongan) and from
those poor households improve the housing conditions of 5,068 households that are currently living in
inadequate housing conditions spread in 286 locations.
• If the municipality used only their own resources, it is estimated that it would take up to 21 years to
tackle the problem of poverty and slums. This led the Mayor to introduce a strategy known as ‘Strategi
Sapu Lidi’, that is synergizing resources from various institutions (central government, local
government, private sector, community) to tackle poverty eradication and slum upgrading. The funds
for infrastructure are in the form of grants, while funds for home improvements and housing
construction are in the form of rotating funds channeled through local cooperatives. Charity is avoided,
as it contradicts the principles of community empowerment.
• As of December 2007, the number of poor households decreased significantly by 27.9%, totaling
22.683 households. improved the housing conditions of 3.026 units or 60% of the target, increased
access funds to 92 clusters of poor households (from the total of 105 poor clusters), improve greenery
in 105 locations and establish Business Development Groups in 92 clusters of poor households.

48. Key lessons
• Good leadership – The Mayor, Dr. Basyir Ahmad has led the
way for Pekalongan to focus on improving the quality of life of
the urban poor through a coordinated and synergized
approach.
• The importance of empowering people by not providing
charity programs. By providing micro-credit and rotating funds,
people become more responsible and accountable for their
actions. Mechanisms for monitoring and evaluating the funds
are set-up within the community organizations and at the city
level through the Working Group.
• Changing the paradigm of development from top-down to
participatory planning is a process that requires the
commitment of various stakeholders.

49. Surabaya
Kampung Improvement Program (KIP)
This program attempted the difficult task of upgrading from site to site across a large city. KIP use
community based organization (CBOs) as project initiators to encourage an active, innovative, and self-
sustained community in order to upgrade the area.
Kampung Improvemant Project is customarily provides a package of improvements for :
• Streets and footpaths
• Drainage and water reticulation System
• Solid waste and domestic waste management
• Street lights
• Electricity
• Health and Safety
On the later stage of the program, these item form parts of the improvement packages :
• Land certification
• Clinics and health education programs
• School facilities and teacher training programs
• Economic and capacity building programs

50. Surabaya
Green and Clean Initiative
Waste has been a major problem in Surabaya. The closing down of the Keputih
Diposal area (2001) resulted in the piling of garbage at 155 temporary disposal
sites. The appalling situation convinced the Surabaya Municipality, NGOs and
citizens that they need to start dealing with the problem and finding solutions
together. After identifying that the main source of waste in Surabaya came from
households, the Surabaya Municipality decided to implement a community-based
waste management program, also known as the Green and Clean Initiative.

51. Green and Clean Kampung

52. 1
2
3
4
1
Communal Toilet
4
Open space
3
Traditional Market
2
Workshop
Kampong Improvement
of Boezem Morokembangan
Part of Surabaya city drainage and flood control system

53. PHASE

54. Block REGION STRATEGY
Settlements area
with direct
sanitation system
goes to Boezem
Construct
infrastructure to make
sure sanitation flow to
Boezem
Settlements area
in the riverside
area
Construct
infrastructure for flood
mitigation
Setlements area
with direct
sanitation system
goes to Boezem
Settlements area
along the river
Kali Anak to
Tambak Asri Area
refunctioning Kali
Anak as main
drainage system that
can handle waste
water flow to Boezem
Settlements area
with drainage
system flow to Kali
Greges
Water quality
improvement and
water flow
management to
Boezem

55. Solo
Empowering the Informal Sector: Street Vendor Management
• Many complaints arrived at the City Mayor’s desk questioning the
existence of street vendors that were considered to be disrupting traffic
and city landscape, polluting the environment, and what actions the city
would take on street vendors.
• Past approaches in dealing with street vendors had resulted in conflicts
between street vendors and the local government.
• The newly elected Mayor, Joko Widodo tried a different approach by
encouraging participation of street vendors.
• Several policies were adopted for street vendor management: building
better communication, creating space (physical and legal recognition),
education and training for street vendors.
• The strategies included relocation, providing shelter, tents and new vendor
carts adopting a traditional Javanese style.

57. Kirab (Traditional Procession)

60. 5. FUTURE DIRECTIONS AND
PROSPECTS
Policy direction
Future prospects

61. Policy Direction
Policy direction of slum upgrading program is intended to comprehend four key components:
governance, legal, environmental, and economic toward better quality of life and sustainable
human settlements
 National Working Group of Housing and Settlement
Environmental
Aspect
Land Availability
Housing and
Settlement
Physical
Development
Housing and
Settlement
Regional and
Site Plan
Facilities and
Utilities Provision
Economic Aspect
Program Financing
Finance
Scheme for
the Poor
Mortgage
Financing
Legal Aspect
Land Aqcuisition
Land and
Building Permit
Facilities and
Utilities Provision
Government
(National &
Regional)
Private
Sector
Academic
Institution
Governance
Aspect
Synergy
Development
Community
Participation
and
Development
NGO
Slum Upgrading
Program

62. Policy Direction
National Working Group of Housing and Settlement Area is a
cross-sector coordination to support integrated housing sector
development at national level.
 National Working Group of Housing and Settlement
Regional Working
Group of Housing
and Settlement
Regional Working
Group of Housing
and Settlement
Regional Working
Group of Housing
and Settlement
NATIONAL
REGIONAL
Division of Policy
Advocacy and
Dissemination
Division
of
Technic
Division of
Institution
Coordination and
Partnership
Division of
Community
Empowerment
and Cooperation
Division
of
Finance
Division of
Monitoring
and
Evaluation
Steering Committee
Housing and Settlement Development
The Decree of Ministerial of National Development Planning
Number 81/M.PPN/D.VI/08/2011.
National Working Group of Housing and
Settlement
The Decree of Deputy of Infrastructure Development
Number KEP.13/D.VI/08/2011 Secretariat

63. Policy Direction
Priority Work Plan 2012
 National Working Group of Housing and Settlement
Housing Database
Development
a
Housing Institution
Development
b
Housing and Settlement
Execution
c
Slum Aleviationd
Land and Permitse
Policy, strategy and
action plan for the
slum upgrading
Implementation of
policy, strategy and
action plan for the
slum upgrading

64. ANNEX
a. Slum indicators
b. Financial mechanism for slum upgrading

65. Annex 1
Draft Slum
Indicators
No Criteria Value Parameter
I II III IV
1 Services Infrastructure 20,44
Clean Water System
Wide of road
Black Water System
GarbageSystem
Electrical System
2 Density 14,88
Population
Level of increasing population
Building Coveragefor Settlement (Standard 80%)
Building Coverage for Lot (Standard 60%)
Ordering System (Pattern of Building Composition)
Open Space for Green
3 House Quality 14,13
Ratio for Building Space to Number of tenant
Ratio supply and demand for clean water
Quality of building material and building structure
Quality of Sanitation
Indoor Air Quality
Natural Lighting
4 Socio-economic Condition 13,81
Occupation
Income
Number of Jobless (National Standard 8,39%)
Condition Of Health (Diare/Ispa/DBD/TBC)
5 Development Location 11,19
Distance to Place of Job
Transportation
6 Role of Tenant 11,06
Number of Migran
Habit of tenant to land (Rent, Buying )
7 Spatial Form 7,56
Scale of District
Distribution Pattern
8 History of Development 6,94 District Development Speed
Total Value 100

66. Annex 2 Financial Mechanism for Slum Upgrading
(beingdeveloped based on Palembang experience)