Mixed-income housing development: A case study of low-cost apartment project in Indonesia

Mixed-income developments enable the cross subsidization of affordable housing without the need for direct subsidies, therefore it could encourage housing developers to involve in public private partnerships. This study elucidated the partnership challenges associated with mixed income housing development schemes and proposed strategies that could assist in promoting mixed-income low-cost apartment developments in Indonesia. Six Indonesia government representatives and six semi-private housing developers were interviewed, from which it was found that one of the greatest challenges was selecting the land for suitable mixed-income housing schemes. This study adds to the field by identifying the critical points for mixed income housing developments. Some changes in financial and asset regulations are needed if mixed-income housing were the project design choice. To lower housing prices, land prices could be minimized by leasing state-owned company land asset, implementing mixed income and mixed-use and reforming the current land use policy to support mixed-income housing developments. In addition, to increase project viability, the proportion of subsidized and nonsubsidized units should be calculated thoroughly.