Indonesia faces one of Southeast Asia’s largest affordable housing shortages. Rapid urbanization has widened gaps in housing finance, construction quality, and climate resilience, leaving many low-income families living in homes vulnerable to seismic, flooding, and extreme heat risk.
Under the Indonesia Sustainable Urban Development Programmatic Advisory Services and Analytics (PASA), this KGGTF grant supported the creation of the Indonesia Green and Affordable Housing Program (IGAHP), a national framework designed to embed climate resilience and green construction standards across the country’s affordable housing sector.
The program focused on four priorities:
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Developing the policy and institutional framework for a national green affordable housing program
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Designing innovative housing finance mechanisms, including credit-linked subsidies for home improvement and rental housing
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Integrating green building certification systems into affordable housing delivery
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Assessing the carbon mitigation potential of low income housing and exploring opportunities for carbon monetization
Grant: Accelerating Indonesia’s Climate-Resilient, Sustainable, and Inclusive Housing
Grant Year: Year 10 (2022)
TTL: Dao H Harrison, Senior Housing Specialist, World Bank
This grant spotlight is excerpted from the 2025 KGGTF Annual Report (Download here)
