Climate change is already affecting millions of people worldwide. In urban areas, which are typically characterized by significantly higher population density, climate change will exacerbate and compound existing vulnerabilities, especially for the urban poor. Across Indonesia cities are facing two interlinked challenges, that of rapid population growth and the impacts of climate change.

Rapid urbanization offers the benefits of larger economies, increased human resources, and potentially more development opportunities, however, unplanned rapid growth can also strain public services and infrastructure, invite casualization of labour and unsafe informal sector employment, causes pollution and overwhelm ecosystems, and leads to traffic congestion.

Secure land and property rights for all are essential to reducing poverty because they underpin economic development and social inclusion. Secure land tenure and property rights enable people in urban and rural areas to invest in improved homes and livelihoods. Although many countries have completely restructured their legal and regulatory framework related to land and they have tried to harmonize modern statutory law with customary ones, millions of people around the world still have insecure land tenure and property rights.

This report addresses and assesses the issue of tenure security  in several countries where government, civil society, the private sector and development cooperation initiatives have been implemented for decades. The selected case studies from fifteen (15) countries (Ghana, Kenya, Ethiopia, Nigeria, Uganda, Zambia, Bangladesh, China, Indonesia, The Philippines, Thailand, Bolivia, Brazil, Chile, Guatemala) ensure not only ageographic balance but they also represent countries with different socio-economic and land-related histories and that have followed different pathways. The studies’ key findings underline the still precariousstate of tenure security in many countries.

The Republic of Indonesia is an equatorial archipelago of over 17,500 islands (6,000 inhabited) extending about 3,200 miles or 5,150 kilometers East to West and 1,250 miles or 2,012 kilometres North to South.

It is the largest archipelago in the world with 1,919,443 square kilometers or 741,098 square miles divided into 33 provinces.Indonesia is also the fourth largest (and the largest muslim) population in the world with 218,868,791 people (2005 census).

This report examines the nature and scope of the housing problem, the housing sector and the financial sector in Indonesia. It describes the structure, patterns, trends, characteristics and evolution of housing finance. It reviews the main players of the housing finance system and driving forces for the change. It examines the strategies and instruments for mobilising domestic resources and the sources and volume of housing finance.

It looks at the structure of mortgage industry and factors constraining the development of housing finance mechanism. It also describes the major low income housing finance programs and initiatives and housing finance subsidies programs in Indonesia. Finally it looks at the alternatives for developing housing mechanisms in Indonesia.