'Not for the poor': Indonesians in capital face housing, commute woes

This picture taken on November 13, 2024 shows upper-middle-class houses seen located close to office buildings in Jakarta. Scrolling on social media, Indonesian moviegoer Jessica Sihotang stumbled across a film depicting a fellow woman in her 30s struggling to make the dream of buying a Jakarta home a reality. (AFP)
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Updated 14 January 2025
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'Not for the poor': Indonesians in capital face housing, commute woes

  • Residents of the megalopolis of 11 million are finding it impossible to climb the property ladder
  • The price of a Jakarta house is on average 20 times higher than an employee’s annual salary

JAKARTA: Scrolling on social media, Indonesian moviegoer Jessica Sihotang stumbled across a film depicting a fellow woman in her 30s struggling to make the dream of buying a Jakarta home a reality.
Nearly two million like-minded Indonesians tuned in to watch the protagonist’s house-hunting journey when “Home Sweet Loan” was released last year, the movie’s producer said.
Residents of the megalopolis of 11 million are finding it impossible to climb the property ladder, as space shrinks and prices rise, forcing them to seek faraway homes that come with arduous commutes.
The movie sparked widespread chatter among Jakartans, as its main character’s grievances resonated with their own long-held housing woes.
“I can relate so much. I’ve been thinking about it for the past 10 years,” said Sihotang.
“I want to have my own house, but my savings have never been enough even just for the down payment,” added the 35-year-old university admissions worker.
Jakarta is where Indonesia’s growing wealth gap is most evident — with unofficial slum housing sitting below shiny new apartment complexes and skyscrapers.
Less than two-thirds of Jakartans own a home, according to Indonesia’s Central Statistics Bureau, the lowest figure compared to other provinces.
Sihotang said she cannot afford a home within 60 kilometers (37 miles) of her job.
“I have to find side hustles for additional income, or maybe try my luck for a few years abroad” before buying a property, she said.
The price of a Jakarta house is on average 20 times higher than an employee’s annual salary, a University of Indonesia survey in June found.
Jakartans like Rizqi Arifuddin have resorted to buying a house in neighboring provinces.
The office worker in one of Jakarta’s main business districts commutes by train for an hour from his home in West Java province.
He then jumps on a motorcycle taxi for another half an hour to reach the office.
“I can never afford a house in the city. Even researching the prices makes me upset,” he said.
With limited space available in the cramped capital known for its brutal traffic jams, prices have skyrocketed.
Housing complexes are now being built further from the city to meet demand.
“This is the reality, people are now competing for places which at least have access to mass transportation,” said Yayat Supriyatna, an urban planner from Trisakti University in Jakarta.
“Jakarta is not a place for the poor,” he told AFP.
Some Indonesians like Muhammad Faris Dzaki Rahadian and his wife have chosen to rent, rather than buy, a property close to work.
“Even with our joint income, it is still not affordable,” said journalist Rahadian, 27.
“I don’t think buying is a rational option.”
To address the housing crisis, the government will require employees from 2027 to contribute three percent of their salaries to a savings fund which they can use for housing.
But it has angered Indonesians who think it won’t be enough — or that it could be taken from them by a government many distrust.
“Who’s going to benefit? It seems to me that people are getting constantly pressured,” Supriyatna said.
Despite the grim housing market, some are still holding on to their dreams.
“Having a house, no matter how small is a symbol of peace of mind for me,” Sihotang said.
“It will give me peace when I’m old.”


Ratcliffe says he is sorry his UK ‘colonized by immigrants’ remark offended some

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Ratcliffe says he is sorry his UK ‘colonized by immigrants’ remark offended some

LONDON: British billionaire Jim Ratcliffe said on Thursday he was sorry he had ​offended some people by saying the country had been “colonized by immigrants,” after Prime Minister Keir Starmer joined a chorus of criticism over the remarks.
Ratcliffe, one of Britain’s most successful businessmen, responded to the outcry with a statement saying it was important to raise the issue of immigration, but that he regretted his “choice of language” had caused concern.
The founder of chemicals giant INEOS, and owner of nearly a third of Manchester United, had told Sky News that high migration and people living on benefits were damaging the economy.
Finance minister: Comments were “disgusting”
“You can’t have an economy with nine million people on benefits and huge levels of immigrants coming in. I mean, the UK has been colonized — it’s ‌costing too much ‌money,” Ratcliffe said in the interview aired on Wednesday.
“The UK has been ​colonized ‌by immigrants, ⁠really, ​hasn’t ⁠it?” he added.
Starmer said the remarks were wrong and would play into the hands of those who wanted to divide the country. Finance minister Rachel Reeves said the comments were “unacceptable” and “disgusting.”
On Thursday, INEOS issued a statement from Ratcliffe in response to “reporting of his comments.”
“I am sorry that my choice of language has offended some people in the UK and Europe and caused concern but it is important to raise the issue of controlled and well-managed immigration that supports economic growth,” he said.
He said he wanted to stress that governments must manage migration alongside investment in skills, industry and jobs to ensure long-term prosperity ⁠is shared by everyone, and that it was “critical that we maintain an open debate ‌on the challenges facing the UK.”
Starmer’s spokesperson said it was right ‌for him to apologize. Asked if an apology about offense caused rather ​than the comments themselves were enough, the spokesperson said ‌questions on the detail of the apology were for Ratcliffe.
Manchester United fans flag up use of “colonized”
His comments were condemned ‌by politicians, campaigners and by fan groups at Manchester United, including its Muslim Supporters Club who said the term “colonized” was frequently used by far-right activists to frame migrants as invaders.
“Public discourse shapes public behavior,” the group said. “When influential figures adopt language that mirrors extremist talking points, it risks legitimising prejudice and deepening division.”
Others noted that the Manchester United first team was largely made up ‌of international players and staff, and questioned whether Ratcliffe should be commenting on British politics when he had moved to the tax haven Monaco.
Before Ratcliffe’s response, The ⁠Mayor of Greater Manchester ⁠Andy Burnham said Ratcliffe’s comments were inflammatory and should be withdrawn.
Immigration debate has intensified
Immigration has consistently been among the top voter concerns in Britain according to opinion polls, and has helped fuel the rise of Nigel Farage’s right-wing populist party Reform UK.
Rhetoric around immigration has hardened in recent years and a wave of protests broke out last summer outside hotels housing asylum seekers. Widespread rioting also occurred in 2024, sparked by false information circulating online that a teenager who killed three young girls was an Islamist migrant.
Sky said Ratcliffe had cited incorrect figures to back up his argument. He said the population had risen from 58 million to 70 million people since 2020. The Office for National Statistics estimates the UK population was 67 million in mid-2020 and 69 million in mid-2024.
The population was around 59 million in 2000. Ratcliffe and his office did not immediately respond to Reuters questions about the figures he ​used.
Farage responded to the comments by saying that Britain ​had undergone mass immigration that had changed the character of many areas in the country. “Labour may try to ignore that but Reform won’t,” he said.