About Indonesia

The housing cooperatives in Indonesia have deep roots and are experiencing a contemporary resurgence as a grassroots response to the country’s housing challenges.

Historical Context

Cooperatives were introduced to Indonesia during the Dutch colonial period, with the establishment of the Bank for Civil Servants (now Bank Rakyat Indonesia) in 1896 by Aria Wiriatmadja. This institution aimed to combat predatory lending practices by providing accessible financial services to civil servants. The cooperative model gained constitutional recognition in 1945, emphasizing economic organization based on kinship principles. The first Cooperative Congress in 1947 led to the formation of the Indonesian Cooperative Council (DEKOPIN), solidifying cooperatives’ role in the nation’s economic development.

Current Landscape

Indonesia faces a significant housing deficit, with an estimated shortage of 12.5 million units. In response, housing cooperatives have emerged as a viable solution, particularly for low-income and urban poor communities. These cooperatives emphasize collective ownership and participatory decision-making, offering an alternative to traditional housing models dominated by private developers and state-owned enterprises.

Organizations like the Urban Poor Consortium (UPC) and urbaMonde are instrumental in scaling up cooperative housing networks nationwide. Initiatives such as the Community Action Plan (CAP) and Collaborative Implementation Program (CIP) have successfully upgraded numerous informal settlements (kampungs) in Jakarta, granting cooperatives management rights and paving the way for future ownership.

Notable examples include the Kampung Akuarium project in Jakarta, where residents formed a housing cooperative to rebuild their community after eviction. This model has empowered residents to self-govern and manage their housing, fostering social cohesion and resilience.

As of June 2025, there are approximately 190 registered housing cooperatives across Indonesia, with concentrations in regions like Bogor and Pandeglang. The cooperative movement continues to evolve, addressing challenges such as limited access to financing and the need for supportive legal frameworks.

Challenges and Opportunities

Despite their potential, housing cooperatives in Indonesia face challenges, including limited government support, restrictive land policies, and financing difficulties. However, initiatives like the “Red and White Village Cooperatives” program aim to establish 80,000 cooperatives in rural areas, potentially providing a framework to support housing cooperatives as well.

Resources Tagged "Indonesia"

Profils d’un mouvement : Les coopératives d’habitation dans le monde

L'habitat coopératif offre des logements abordables à long terme, gérés par les résidents, avec des avantages sociaux, économiques et environnementaux avérés. Malgré son impact mondial, ce secteur reste méconnu.Read More

Financing and Development Global Report

Public Cooperative Housing Policies: An International Perspective

Explore public policies supporting cooperative housing worldwide in this comprehensive report. Discover how governments and cooperatives collaborate to create sustainable and affordable housing solutions globally.Read More

Research Global Research Paper

Financing Co-operative and Mutual Housing

The Commission's final report on Cooperative and Mutual Housing (Bringing Democracy Home) highlighted the need for consideration of the role that cooperative and mutual housing could play in the national housing strategy. The Fina ...Read More

Financing and Development Global Report

Logement abordable : profils de cinq villes métropolitaines

Par cette publication, nous souhaitons ouvrir le débat sur le logement en tant que droit fondamental et enjeu métropolitain, en mettant en lumière l’expérience de grandes métropoles et dans l’espoir d’inspirer des idées nouvelles pour aborder cet enjeu absolument fondamental de l’urbanisation moderne.Read More

Advocacy Global

Building Strong Development Cooperation: Partnership Opportunities between Cooperatives and the EU

In 2000, United Nations (UN) member states recognised the need to build global partnerships for development and the exchange of expertise as one of the Millennium Development Goals. Across the international development field, part ...Read More

Financing and Development Global

Raising Capital: The Capital Conundrum for Co-operatives

New report: The Capital Conundrum for Co-operatives "The Capital Conundrum for Co-operatives", a new report released by the Alliance’s Blue Ribbon Commission explores ideas and options available to co-operatives that need suitab ...Read More

Financing and Development Global

Financing Housing Co-operatives in a Credit Crunch

Financing the development of housing co-operatives is a challenge and more so in time of financial restrictions and uncertainty.  CHI members discussed the issue during a seminar held in November 2009 in Geneva.  Presentations w ...Read More

Financing and Development Global

What’s new in Sustainable Forest Management?

 The Forest Products Annual Market Review 2013 reports that the development of new refinement processes has led to the production of new and more affordable wood based products such as cross-laminated timber (CLT). The report sta ...Read More

Sustainability Global

The Guidance Notes on the Co-operative Principles

Updated Guidance Notes on the Co-operative Principles, edited by David Rodgers, former President of Co-operative Housing InternationalRead More

Governance Global

Promoting Cooperatives – International Labour Organization (ILO) Recommendation 193 on the Promotion of Cooperatives

The ILO views cooperatives as important in improving the living and working conditions of women and men globally as well as making essential infrastructure and services available even in areas neglected by the state and investor-driven enterprises. Cooperatives have a proven record of creating and sustaining employment – they provide over 100 million jobs today; they advance the ILO’s Global Employment Agenda and contribute to promoting decent work.Read More

Legal Global

Profiles of a Movement: Co-operative Housing around the World – Volume One

Cooperative housing offers long-term, affordable homes governed by residents, with proven social, economic, and environmental benefits. Despite its global impact, the sector remains under-recognized.Read More

Financing and Development Europe Report

Students and Housing Cooperatives

Student housing cooperatives have become very popular in the USA and many of these housing co-operatives are members of organizations such as NASCO. Unlike a resident who acquires shares at market rates to earn the right to occupy ...Read More

Community Global

Good Governance Charter for Housing Co-operatives

 The Good Governance Charter for Housing Co-operatives was launched at the ICA Housing Plenary in Manchester in November 2012.It has three parts:A 10-point set of good governance practicesAn interpretive statement for each good p ...Read More

Governance Global

Profiles of a Movement: Co-operative Housing around the World – Volume Two

This second volume of Housing Co-operative Profiles focuses on African countries, showcasing the ingenuity and commitment of cooperators working under difficult conditions. It offers insights into the legal, financial, and historical contexts of housing co-ops, aiming to inspire broader adoption of the model as a solution to the global housing crisis.Read More

Community Global Report

The Blueprint for a Co-operative Decade and its Special Application to the Housing Sector

The Blueprint for a Co-operative Decade is a worldwide campaign to “take the co-operative way of doing business to a new level”. The five key elements of the Blueprint are participation, sustainability, identity, legal frameworks and capital. The Blueprint is particularly relevant to co-operative housing and the Blueprint interpretation for co-operative housing below explains how.Read More

Governance Global