Indonesia is undergoing a major and rapid structural transformation into an urban manufacturing, and service-based economy. About 158 million people, 57 percent of Indonesians, live in cities and towns in 2020 and by 2046, approximately 220 million people, over 70 percent, will live in cities. Urbanization has the potential to be a major driver of prosperity and inclusiveness in Indonesia, but realizing this potential requires bold institutional reforms. The rapid growth of urban areas has put pressure on infrastructure, basic services, land, housing, and the environment
it has also eroded the livability of cities and reduced the prosperity gains from urbanization. The large increases in urban population, combined with a dearth of affordable housing options for lower-income households, has led to overcrowding and the expansion of slums characterized by substandard housing, inadequate access to basic services, poor health, and vulnerability to disaster risks. The Indonesian government has developed a broad set of policies and institutions to support affordable housing, but these have not yet been effective in improving housing conditions at scale. An efficient housing delivery requires access to an integrated database and key housing indicators that allow both the public and private sectors to assess housing needs and find the most cost-effective and structurally and technologically efficient ways to fulfill those needs. In particular, access to reliable and timely housing related data and indicators can help the public sector make informed regulations and policy decisions and better target government housing subsidy programs.