Aligning community and public priorities in informal settlement upgrading: Evidence from discrete choice experiments in Indonesia

Rohan Sweeney (), Farzana Hossain (), Jumriani Ansar (), Indra Dwinata (), Sitti Andriani Anwar (), Arlyani Risal (), Gang Chen (), Michaela F. Prescott (), S Fiona Barker (), Karin Leder (), Ansariadi Ansariadi () and David W. Johnston ()
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Rohan Sweeney: Centre for Health Economics, Monash Business School, Monash University
Farzana Hossain: Centre for Health Economics, Monash Business School, Monash University, The Superpower Institute, Melbourne
Jumriani Ansar: Faculty of Public Health, Hasanuddin University, Makassar
Indra Dwinata: Faculty of Public Health, Hasanuddin University, Makassar
Sitti Andriani Anwar: Faculty of Public Health, Hasanuddin University, Makassar
Arlyani Risal: Faculty of Public Health, Hasanuddin University, Makassar
Gang Chen: Centre for Health Economics, Monash Business School, Monash University, Melbourne School of Population and Global Health, University of Melbourne
Michaela F. Prescott: Faculty of Art Design & Architecture, Monash University
S Fiona Barker: School of Public Health and Preventive Medicine, Monash University
Karin Leder: School of Public Health and Preventive Medicine, Monash University
Ansariadi Ansariadi: Faculty of Public Health, Hasanuddin University, Makassar
David W. Johnston: Centre for Health Economics, Monash Business School, Monash University

No 2026-02, Working Papers from Centre for Health Economics, Monash University

Abstract: This study employs two discrete choice experiments (DCEs) conducted with two sample groups in Indonesia to investigate the informal settlement upgrading priorities of residents (sample 1) and explore how they align with public taxpayers’ preferences (sample 2). The first DCE explores the relative importance placed upon common planning and public health priorities, such as water security, drainage, and diarrhoea in children, alongside local economic development priorities. The second DCE investigates the relative importance placed upon project implementation design considerations, including project completion time and community consultation. Our findings reveal that residents particularly prioritise improvements in water quality and economic development. While informal settlement upgrading interventions often prioritise improving water, sanitation and hygiene (WaSH) to reduce diarrhoea and other water-borne disease, our study highlights that residents also highly value economic empowerment, underscoring the need for integrated upgrading approaches that address both health and livelihood concerns. Taxpayer perspectives were well-aligned on upgrading outcome priorities, but diverged slightly on project implementation. Whereas residents prioritized minimizing project duration and were less concerned with significant community consultation, taxpayers emphasized generating employment opportunities for residents within project designs. Both groups expressed an aversion to residents bearing full responsibility for resourcing ongoing operations and maintenance, preferring government or shared responsibility, highlighting the need for sustainable funding models. The study highlights the value of DCEs as a tool to support locally-led development, informing upgrading strategies that are more likely to be both politically feasible and successfully appropriated into urban livelihood practices of residents.

Keywords: informal settlements; slum upgrading; infrastructure appropriation; locally-led development; discrete choice experiment (search for similar items in EconPapers)
JEL-codes: H41 I15 O12 O18 (search for similar items in EconPapers)
Date: 2026-02
New Economics Papers: this item is included in nep-dcm, nep-exp, nep-iue, nep-ppm and nep-sea
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