Indonesia has an urban qualitative housing deficit of 22 million households – an issue that is compounded for female-headed households because they have less access to formal finance institutions than men. Homeownership rates for women are very low, as their lack of assets limits women’s ability to apply for loans or meet loan requirements – meaning most women choose to self-build their own homes. The government has attempted to quell this issue with ambitious housing programs focusing on increasing housing affordability through reducing monthly payments on loans and giving grants directly to households for down payments or upgrades.
However, results of these housing programs have not been as effective as desired, partially because they don’t address the major challenge facing women: a lack of access to formal lending and financial institutions. Housing programs still favor high-income households, developer-built housing over rentals or improvement investments, and do not recognize informal incomes – which constitute the livelihood of many women.
Source:
International Finance Corporation. (2023) Her Home II: Housing Finance in Ghana, Senegal and Indonesia. International Finance Corporation.