logo
Indonesia in rent-to-own scheme proposal

Indonesia in rent-to-own scheme proposal

The Star22-05-2025

Tthe scheme could address the persistent issue of informal workers who were often underserved by banks. — AFP
JAKARTA: Property developers have proposed a rent-to-own scheme as a way to ease homeownership access for workers in the informal sector.
Junaidi Abdillah, chairman of the All-Indonesia Association of Housing and Settlement Developers said the scheme could address the persistent issue of informal workers who were often underserved by banks.
Thus, they stood little chance to access mortgages, due to fluctuation in their income.
'It's complicated for banks to assess non-fixed income earners, like bakso (meatball) sellers, vegetable sellers or street hawkers,' Junaidi told a meeting on Tuesday with the House of Representatives Commission V, which oversees infrastructure, transportation and the development of disadvantaged regions.
'It's very difficult for them to access financing.
'Only a small percentage manage to get it, mostly through Bank Tabungan Negara (BTN),' he added, referring to state-owned mortgage lender BTN.
Junaidi suggested the provision of a rent-to-own scheme as an option for informal workers who might not fit the conventional creditworthiness criteria, especially the Financial Information Service System of the Financial Services Authority that banks commonly used.
'If (rent payments) go well for several years, you can own the house. So we don't assess (eligibility based on salary), making this rent-to-own scheme compatible for people who are underserved by banks,' he said.
At the same meeting, chairman Muhamad Syawali of the National Housing Developers and Marketers Association said banks' credit scoring system had hampered access to home financing, even for formal workers who earned a fixed monthly income.
According to Syawali, many formal workers, especially those who earned less than six million rupiah per month, were unable to obtain financing for subsidised housing.
For example, he continued, the minimum wage in East Java was 2.4 million rupiah per month but under the standard bank scoring model, only 30% of this amount could be put toward mortgage payments.
Furthermore, this meant that people who earned around two million rupiah would only qualify for a monthly mortgage of between 800,000 rupiah and 900,000 rupiah.
'However, even the minimum mortgage payment for subsidised housing is 1.05 million rupiah. The numbers don't add up,' said Syawali.
He also pointed to problems in several regions where regulations, such as exemptions from the land and property transfer duty (BPHTB) for low-income homebuyers, were not enforced.
Last November, Home Minister Tito Karnavian, Public Housing and Settlements Minister Maruarar 'Ara' Sirait and Public Works Minister Dody Hanggodo signed a joint ministerial decree aimed at helping low-income individuals own homes and included waivers for the BPHTB and the building approval fee, both of which are normally paid to regional administrations when purchasing a house.
In April this year, the government issued another regulation, which increased the previous maximum income cap of eight million rupiah per month regardless of marital status, in a bid to boost homeownership by expanding the subsidised housing program to people in higher income brackets, including the middle class. — The Jakarta Post/ANN

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Trump touts 'done' deal with Beijing on rare earths, Chinese students
Trump touts 'done' deal with Beijing on rare earths, Chinese students

Borneo Post

time10 hours ago

  • Borneo Post

Trump touts 'done' deal with Beijing on rare earths, Chinese students

Trump says on his Truth Social platform that China would supply rare earth minerals and magnets — vital elements for US industries — while Washington would allow Chinese students to remain in US universities. – AFP photo WASHINGTON (June 11): US President Donald Trump touted ties with China as 'excellent' today, saying the superpowers reached a deal after two days of talks aimed at preserving a truce in their damaging trade war. Trump said on his Truth Social platform that China would supply rare earth minerals and magnets — vital elements for US industries — while Washington would allow Chinese students to remain in US universities. His post came hours after top US and Chinese negotiators announced a 'framework' agreement late Tuesday following two days of marathon talks in London. 'Our deal with China is done,' Trump wrote, adding that the agreement was still 'subject to final approval with President Xi (Jinping) and me.' 'President XI and I are going to work closely together to open up China to American Trade,' he said in a second post. 'This would be a great WIN for both countries!!!' US stock markets showed little enthusiasm despite Trump's latest statements, with the broad-based S&P 500 and the Dow flat while the tech-heavy Nasdaq edged higher in morning deals. 'Candid' talks The two sides had agreed to reduce their tit-for-tat, triple-digit tariffs during talks in Geneva last month, but cracks appeared in the detente after Trump accused China of violating the deal. Washington was concerned at slower supplies of rare earths after Beijing in early April began requiring domestic exporters to apply for a license — widely seen as a response to US tariffs. Rare earths are used in everything from electric vehicles to hard drives, wind turbines and missiles. US Commerce Secretary Howard Lutnick said in London on Tuesday that US measures imposed when rare earths 'were not coming' would likely be relaxed once Beijing moved forward with more license approvals. In his Truth Social post, Trump said China will supply 'full magnets, and any necessary rare earths… up front.' Washington has infuriated Beijing by vowing to revoke the visas of Chinese students — a major source of revenue for US universities. Today, Trump said: 'We will provide to China what was agreed to, including Chinese students using our colleges and universities.' The US president also said that under the deal, the United States would apply 55 per cent tariffs on Chinese goods — a combination of his 30 per cent additional levies and the rough average of pre-existing duties, a White House official said. He said Beijing would charge 10 per cent duties on US goods. The rates are the same as those that were previously agreed in the truce, which brought US tariffs down from 145 per cent and those imposed by China from 125 per cent. In a Chinese state media readout of the talks released today, Vice Premier He Lifeng, who headed Beijing's team in London, stressed the need for the two sides to strengthen cooperation in future dialogue. 'As a next step, the two sides should… continuously enhance consensus, reduce misunderstandings and strengthen cooperation,' He Lifeng said, according to state broadcaster CCTV. Speaking to reporters in London, China International Trade Representative Li Chenggang said: 'Our communication has been very professional, rational, in-depth and candid.' – AFP China donald trump economy rare earth students tariff trade war us

Nvidia trumpets European AI infrastructure push
Nvidia trumpets European AI infrastructure push

The Sun

time12 hours ago

  • The Sun

Nvidia trumpets European AI infrastructure push

PARIS: US chip giant Nvidia on Wednesday announced a broad infrastructure push into Europe, partnering with local companies to help build the continent's 'own ecosystem' for AI, chief executive Jensen Huang said in Paris. 'In just two years we will increase the amount of AI computing capacity in Europe by a factor of 10,' Huang told attendees at the French capital's annual Vivatech trade fair, striding around the stage wearing his trademark leather jacket. California-based Nvidia is by far the largest producer of chips for AI -- notably the Graphics Processing Units (GPUs) originally developed for high-end gaming. Nvidia's chips have proved uniquely suited for generative AI, whether powering robots, software or self-driving cars. Singling out a local firm, Huang said Nvidia would partner with French AI startup Mistral to build a cloud platform powered by 18,000 of Nvidia's latest high-end Blackwell chips. Basing the billions of euros (dollars) worth of hardware in Europe would offer firms the 'strategic autonomy they need', Mistral chief Arthur Mensch told AFP, adding that the project would 'strengthen European technological leadership'. Huang said that Nvidia would build up existing partnerships, such as with French electrical goods maker Schneider Electric, including on developing gigantic data centres dedicated to AI -- which Nvidia calls 'AI factories'. It will also strengthen work with Germany's Siemens on so-called 'digital twins' simluating real-world environments, and on automating industrial processes. Nvidia plans to feed its chips into data centres across Europe, including in Spain, Italy, Britain, Finland, Germany and Sweden. The world's government chiefs 'all want to have AI factories, they all want AI to be part of their infrastructure,' Huang said. He added that Nvidia was partnering with major companies to develop their own AI models more easily, such as French banking giant BNP or cosmetics heavyweight L'Oreal. 'I'm so happy that Europe is going all-in on AI,' he said. Europe is well behind competitors like the United States and China in building up the computing power needed to power generative artificial intelligence. The continent hosts 'less than five percent of global computing power, whereas we consume 20 percent,' French President Emmanuel Macron's office said in a press briefing ahead of the leader's visit to Vivatech. With its ability to sell into China still crimped by American export restrictions, Nvidia is on the hunt for growth opportunities elsewhere around the world.

Musk regrets some of his Trump criticisms, says they 'went too far'
Musk regrets some of his Trump criticisms, says they 'went too far'

Sinar Daily

time12 hours ago

  • Sinar Daily

Musk regrets some of his Trump criticisms, says they 'went too far'

Musk's expression of regret came just days after Trump threatened the tech billionaire with "serious consequences" if he sought to punish Republicans who vote for a controversial spending bill. 11 Jun 2025 04:16pm US President Donald Trump and Elon Musk (R) speak in the Oval Office before departing the White House in Washington, DC, on the way to Trump's residence at Mar-a-Lago in Palm Beach, Florida on March 14, 2025. (Photo by ROBERTO SCHMIDT / AFP) WASHINGTON - Elon Musk, the world's richest person and Donald Trump's former advisor, said Wednesday he regretted some of his recent criticisms of the US president, after the pair's public falling-out last week. "I regret some of my posts about President @realDonaldTrump last week. They went too far," Musk wrote on his social media platform X. US President Donald Trum exits the Oval Office as he walks to Marine One on the South Lawn upon departure from the White House in Washington, DC, on June 6, 2025, en route to New Jersey for the weekend. US President Donald Trump said Friday that Elon Musk had "lost his mind" but insisted he wanted to move on from the fiery split with his billionaire former ally. The blistering public break-up between the world's richest person and the world's most powerful is fraught with political and economic risks all round. (Photo by SAUL LOEB / AFP) Musk's expression of regret came just days after Trump threatened the tech billionaire with "serious consequences" if he sought to punish Republicans who vote for a controversial spending bill. Their blistering break-up -- largely carried out on social media before a riveted public on Thursday last week -- was ignited by Musk's harsh criticism of Trump's so-called "big, beautiful" spending bill, which is currently before Congress. Some lawmakers who were against the bill had called on Musk -- one of the Republican Party's biggest financial backers in last year's presidential election -- to fund primary challenges against Republicans who voted for the legislation. "He'll have to pay very serious consequences if he does that," Trump, who also branded Musk "disrespectful," told NBC News on Saturday, without specifying what those consequences would be. - AFP More Like This

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store