Property developers have proposed a rent-to-own scheme as a way to ease homeownership access for workers in the informal sector.

Junaidi Abdillah, chairman of the All-Indonesia Association of Housing and Settlement Developers (Apersi), said the scheme could address the persistent issue of informal workers who were often underserved by banks. Thus, they stood little chance to access mortgages, due to fluctuation in their income.

“It’s complicated for banks to assess non-fixed income earners, like bakso [meatball] sellers, vegetable sellers or street hawkers,” Junaidi told a meeting on Tuesday with the House of Representatives Commission V, which oversees infrastructure, transportation and the development of disadvantaged regions.

“It’s very difficult for them to access financing. Only a small percentage manage to get it, mostly through BTN,” he added, referring to state-owned mortgage lender Bank Tabungan Negara.

Junaidi suggested the provision of a rent-to-own scheme as an option for informal workers who might not fit the conventional creditworthiness criteria, especially the Financial Information Service System (SLIK) of the Financial Services Authority (OJK) that banks commonly used.

“If [rent payments] go well for several years, you can own the house. So we don’t assess [eligibility based on salary], making this rent-to-own scheme compatible for people who are underserved by banks,” he said.

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At the same meeting, chairman Muhamad Syawali of the National Housing Developers and Marketers Association (Asprumnas) said banks’ credit scoring system had hampered access to home financing, even for formal workers who earned a fixed monthly income.