Band 5+: Housing and accommodation has become a major problem in many countries around the world. What are some of the main factors that have contributed to this problem? What can be done to help reduce the number of homeless people?

It is becoming increasingly difficult for individuals in many countries to have at least a house or rent an accommodation. This situation leading to a vulnerability by giving the fact that housing is one of the primary need for living. This essay will identify the main causes of this situation and provide effective solutions that can be intervened by the government in tackling the issue.

In recent years, owning a house has been difficult for everyone. The main reason behind this problem is because the housing market is expensive and unaffordable for many people. And the price has been surging from time to time which is incomparable with the rise of income. Take a look at Jakarta for example, the biggest city in Indonesia, has the highest price of accommodation and housing compared to any cities. The average price for a medium sized house with two bedrooms attained one billion rupiahs while some other regions still made up around 300-500 million rupiahs. The mortgage schemed by the bank may offer an alternative solution to minimize the problem, especially for the young generation. However, it’s kind of difficult to permit a loan if you are not a worker in the formal sector with regular income. Meanwhile, given the reality that 90 percent of the workforce in Indonesia are from the informal sector, affect the problem more complex.

It is evident that relying on the market mechanism alone does not work, there should be the role of government in meddling this situation. The most popular policy based on evidence is giving subsidies to its citizen. The Government of Indonesia have been implementing home ownership credit financing, also known as KPR. The program designed to support homeownership for low-income individuals with affordable price including a safety building. Event though there are need lots to improve, such as reducing the targets error, we cannot set aside that KPR program is moderately effective. In addition to this, creative funding schemes for the informal sector should be taken into consideration in the next policy planning.

To summarise, it is undeniable that most people cannot afford a house for living because the high price of housing which is incomparable with the average income of individuals. While the market and the bank cannot provide an effective solution, the government policies play vital role to tackling the issue.