Housing the Gap: Provision Structures and Public Policy on Formal Housing Development in Indonesia’s Evolving Market

Housing shortages remain a persistent global challenge shaped by demographic, economic, and institutional dynamics. In Indonesia, housing demand far outpaces supply: around 800,000 new units are needed annually, yet only about 350,000 are produced by the formal sector, leaving millions dependent on informal solutions. This dissertation examines how the structure of housing provision and public policy interact to shape formal housing development in Indonesia’s evolving market economy.
Revisiting Turner’s (1972) concept of housing as a verb and extending it through Adams’s (1994) market-process perspective, the study conceptualizes housing as a dynamic governance process shaped by negotiation, contestation, and adaptation among multiple actors. Through four empirical studies, it analyzes: (1) the transformation of Indonesia’s housing provision structure and the rise of financialization; (2) the evolution of affordable housing policy under public–private interplay; (3) the role of land policies and speculative land banking; and (4) the institutional and market factors driving development delays.
The dissertation contributes theoretically by repositioning housing provision as an institutionalized process of governance, and empirically by revealing how speculation, inefficiency, and fragmented regulation reproduce housing gaps. It offers practical insights for strengthening policy integration, land governance, and regulatory capacity toward more inclusive and efficient housing delivery.