‘No, thank you’: is Indonesia set to follow Hong Kong with its own tiny homes?

Housing authorities are mulling reducing the floor space for affordable homes to a mere 18 square metres (194 sq ft)

The Indonesian government has faced backlash over its plan to further downsize already tiny proposed subsidised housing, with critics worrying that the cramped conditions may jeopardise physical and mental well-being.

Indonesia’s housing authorities are proposing a reduction in the minimum plot size for subsidised homes from 60 square metres (645 sq ft) to 25 square metres (270 sq ft), and shrinking the built area from 21 square metres (226 sq ft) to 18 square metres (194 sq ft).

However, the downsized plan is still under discussion, Housing Minister Maruarar Sirait recently said, promising that the government would not sacrifice quality to stay within the budget.

“Land prices in the cities continue to rise, but should we give up because of that?” Maruarar said, according to the English-language Jakarta Globe newspaper. “No. We redesign it while making sure it is still liveable and attractive.”

President Prabowo Subianto rolled out his government’s flagship “3 million homes” programme last October to address the country’s housing shortage, particularly for young, low-income urban dwellers.

Indonesia recorded a staggering 9.9 million-unit housing deficit in 2023, a figure which could balloon to 15 million this year, Deputy Housing Minister Fahri Hamzah warned.

Eager to get the project under way, Maruarar has tapped property conglomerate Lippo Group for help.

The developer is already displaying a mock-up of a 14-square-metre (150 sq ft) one-bedroom “mini” home and its 23.4-square-metre (252 sq ft) two-bedroom counterpart at Lippo Mall Nusantara in South Jakarta, according to The Jakarta Post.

Slated for development in Jakarta and the surrounding cities of Bekasi, Bogor, Depok and Tangerang, these Lippo-built homes will cost between US$6,121 and US$8,570.

“These smaller homes aim to attract young people, particularly Gen Zers who wish to [live] closer to their workplace in minimalist and affordable homes in urban areas,” Urban Housing Director Sri Haryati said.

These smaller homes aim to attract young people, particularly Gen ZersIndonesia’s Urban Housing Director Sri Haryati

But that failed to convince its target audience. When asked if she was willing to live in these “shoebox” homes, 30-year-old office worker Hanah said, “No, thank you.”

“Perhaps I would if I were to live alone, but imagine living there as a family of three. Wouldn’t that be stressful? I can only imagine that I would only be fighting with the family members,” she told the Jakarta Globe.

These “mini” homes also appear to violate existing regulations, which state that a subsidised house must occupy a 60-square-metre to 200-square-metre (645 sq ft to 2,153 sq ft) plot and its minimum built area must cover 21 square metres (226 sq ft). Also, critics have pointed out that the tiny units lack basic features such as proper lighting and ventilation.

Living in very small spaces could undermine quality of life and take a toll on one’s health, urban planning expert Yayat Supriatna said.

An 18-square-metre (194 sq ft) home would translate to less than 5 square metre (54 sq ft) per person, way below the national minimum standard. People would be more prone to stress and pneumonia if their housing lacked proper ventilation, sunlight and space to move around, he added.

Any smaller and they could rival Hong Kong’s “coffin homes”. Also known as cage homes or bed spaces, these typically range from 1.4 square metres to 1.9 square metres (15 sq ft to 20 sq ft) and are known for their poor, cramped conditions. Even in land-scarce Hong Kong, nano flats have a living area of about 24 square metres (260 sq ft).

Last week, the Indonesian initiative, which is estimated to require about 25 trillion rupiah (US$1.53 billion), received a boost from the government’s sovereign wealth fund, Daya Anagata Nusantara Investment Management Agency (Danantara).

“[Danantara CEO Rosan Roeslani] mentioned 130 trillion rupiah from the People’s Business Credit for housing,” Maruarar said on June 17, according to Tempo news magazine.

As of February, four months after the housing initiative’s launch, more than 93,000 homes have been delivered, Indonesia Business Post reported.