Housing backlog Magelang City (Indonesia) is still very high. Most of the contributors to the backlog are Low-Income society (LIS). The Magelang City Government owns three rental flats and two leased landed houses for LIS. The rental period for residential units is limited, the maximum is 6 years. After that, it is unknown where the tenant will live. Inviting residential tenants to set aside money for savings is not easy, because their income is limited and their desire to use money for tertiary needs often arises due to the consumptive culture of the community. Therefore, an ivitation was made that compels tenants to save regularly and cannot be taken except for the purpose of building their own private house, so that it is hoped that after the rental period is over, they will have money for home ownership purposes. To be more enthusiastic in saving, a community was formed between residents to support each other, as well as awards for good savers. Therefore, a Cooperation Agreement was made with a bank owned by the regional government that served its money storage facility by the way the bank picked up the money, as a form of service to customers. With an approach to the community, a land plot owner was found who was willing to sell his land at a low price. And the land plots can be used for 20 units of Very Simple Houses. To overcome the insufficient budget owned by residential tenants to purchase land plots, a Cooperation Agreement was made with local government-owned banks so that they can serve land purchase loans with low interest (6%) and long payment terms (15 years). For the process of providing houses, the source of funding for Very Simple Houses (36m²) was obtained from the Central Java Provincial Government.

Keywords

House ownership, Low-income society, Money saving, Government-owned bank, Rental flat belongs to government

Suyamto Suyamto

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Establishing Autonomy of House Ownership in Low-income Society by Administering Money Saving