BlockChain: Why Disruptive Technologies Matter for Affordable Housing: The Case of Indonesia


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BlockChain:   The Case of Indonesia

Extensive Data. Blockchain. Drones. E-Wallets. Man made Intelligence.

These are words that one would search files from to hear on the latest convention in Silicon Valley, no longer throughout a discussion of Indonesia’s reasonably priced housing challenges. Yet they were buzzing by the captive crowd in Jakarta on the Disruptive Applied sciences Workshop for Cheap Housing on September 17, 2018. The occasion, hosted by Indonesia’s Ministry of Public Works and Housing with increase from the World Bank’s National Cheap Housing Program (NAHP), became as soon as attended by a hundred and fifty contributors from native public companies, developers, lenders, and neighborhood organizations. The workshop’s purpose became as soon as to uncover one expansive query: How may perchance perchance Indonesia harness the vitality of disruptive applied sciences to remodel its housing ecosystem?   

Indonesia cities are rising sooner than these of its Asian neighbors at a fee of four.1% a year. On the opposite hand, the advantages of urbanization – economic hiss and poverty reduction – won’t be completely realized till the country can amplify entry to licensed services and products and put money into reasonably priced housing for its residents. An estimated 820,000 to 1 million housing gadgets are fundamental on a yearly foundation to meet the rising assign a query to between now and 2030.

Indonesia’s present housing hiss dovetails with the shortly type of its know-how sector. There’s stable originate-up culture that has birthed native giants worship Lunge-Jek, which started as a straightforward stride-hailing app for bike taxis and expanded to over a dozen services and products, along with food birth, therapeutic massage booking, and cellular funds. Lunge-Jek is currently valued at shut to $5 billion. Via its ascent, it has revolutionized facets of life in Indonesia’s cities and contributed to a booming gig economy.

Workshop contributors were fervent to spy: were there quite a lot of budding applied sciences accessible, worship Lunge-Jek, which may perchance perchance swap the plan Indonesia approached housing? Listed below are about a of the promising pitches that were offered to the neighborhood.

iBuild Citizen-centric cellular utility that facilitates residence self-construction processes

Who it’s for Households; construction workers; contractors; lenders; developers; policymakers
Why it’s fundamental Most housing is self-constructed, because it’s continually the suitable financially reasonably priced likelihood. Gain admission to to credit is little, and the enchancment sector is basically unorganized and informal. Authorities subsidies given against self-produce tasks are complex to observe and extremely inclined to fraud.
The plan it works The spend of the cellular platform, users obtain contractors and rep quotes for tasks, elevate materials, computer screen the growth of construction tasks, hideous quality of services and products and rep cellular funds to distributors.  E-wallets support guarantee that that authorities subsidies are being outmoded for supposed cause.
Why it’s promising
  • Empowers voters to take support watch over of the residence construction job
  • Improves transparency, group, and competition in a broad informal construction sector
  • Aggregates files on beforehand informal transactions to enhance present coverage-making

Metropolis Planning Lab Cheap Housing Suitability Instrument Geospatial planning machine that identifies optimal locations for reasonably priced housing trends

Who it’s for Spatial planning companies, central and native authorities, and developers
Why it’s fundamental Authorities-subsidized housing tasks are generally poorly located on extra than one components. They are customarily removed from the central substitute district, geographically abominable, and absence entry to licensed services and products and employment centers.
The plan it works The spend of the rep machine, which mixes geospatial and satellite files, users can generate a heat scheme that displays optimal locations, per a detailed checklist of generous components similar to entry to
Why it’s promising
  • Boosts native authorities capability to title extra optimal, and thus extra a success, locations for reasonably priced housing
  • Facilitates collaborative and suggested resolution making


IBM Blockchain  Genuine, clear, and efficient digital ledger that streamlines land titling processes

Who it’s for Low-profits and informal populations; NGO’s; Land Planning Agencies; lenders
Why it’s fundamental Virtually 20% of city slum dwellers don’t bear formal tenure on their properties, which manner they’ll’t entry formal financing for residence enchancment. The job for obtaining this tenure in Indonesia is inefficient and expensive.
The plan it works Networks of neighborhood workers seek for and scheme land/ property ownership in a “fit for cause” manner, and spend blockchain – a public, secure, decentralized digital ledger – to streamline the mapping job and speed land titling.
Why it’s promising
  • Streamlines the formulation and reduces the transaction costs of obtaining formal tenure  
  • Offers a uniquely secure, clear, and tamper-proof manner of documentation

Property PriceTag  Use of Extensive Data and original applied sciences to observe housing provide and assign a query to for suggested resolution-making

Who it’s for Public companies; developers; lenders; quite a lot of key stakeholders  
Why it’s fundamental Data on the housing market is currently scattered at some stage in public and personal companies, and complex to evaluate in actual time and on a tidy scale.  
The plan it works Extensive Data is consolidated at some stage in diverse sources, along with public and personal files, and files gathered by innovative methods (i.e. trained Man made Intelligence bots that can count the sequence of particular particular person properties on satellite photos).
Why it’s promising
  • Equips policymakers and corporations to rep extra timely and suggested choices nearly in regards to the housing market 
  • Applied sciences to be integrated into the enchancment of NAHP’s Housing Accurate Estate Data Machine, a actual-time housing database outmoded for resolution-making by both the general public and personal sector


The applied sciences described above are honest the tip of the iceberg of what became as soon as talked about on the workshop.  Now no longer a luxury of evolved economies, these

disruptive innovations fetch broad attainable to empower suggested resolution-making, formalize the informal, and radically reinvent housing fee chains to remodel the reasonably priced housing sector and increase the lives of hundreds of thousands

. Clearly, as with any technological advancement, there are serious disorders to support in mind and notion for similar to shoppers’ privateness rights safety and cybersecurity in an age of interconnectedness. It’s a good job for any authorities to navigate, but one neatly fee the waterfall of advantages.

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