Analysis of Factors Affecting House Ownership in Indonesia

Abstract

This study aims to analyze the variables that significantly and effectively affect the policy of house ownership in an effort to increase the house ownership in Indonesia. The research used Tawhidi String Relationship (TSR) methodology with circular causation through simultaneous equations as a quantitative analysis tool. Variables that are expected to affect the house ownership are 1) Sharia Financing, 2) Commercial Funding Cost, 3) House Sale Price, 4) Consumer Confidence, 5) Home Business Tendency, 6) Number of Houses Available and 7) Housing Infrastructure.This study uses secondary data sourced from Bank Indonesia, Financial Services Authority, Central Bureau of Statistics, Ministry of PUPR and some other supporting data from institutions and companies. The data used is monthly panel data from January 2005 to December 2016. The research method used is quantitative method with simultaneous equation analysis to see the causal relationship between the variables with Two Stages Least Square model (2SLS). The hioptesis test used at 95% significance level. The results show that Shariah Financing, Commercial Funding Costs, Business Tendencies, Number of Houses Available and Infrastructure House affect each other positively and significantly the Number of House Ownership. On the other hand, although it is theoretically influential, the House Sale Price and Consumer Confidence do not affect the House ownership. Based on the results of the study, it is suggested to the Government and the stakeholders of housing to focus on the creation of policies involving significant and positive variables affecting the house ownership. The limitation of this research is that this research is only done from quantitative perspective, does not use certain weight on each variable and not done quantitative simulation for more effective house ownership policy.