Urbanization is not limited to people who earn enough, but also encourage the community under the less educated and skilled to move and settle in Jakarta. These were the ones who often later created his own living environment in the wild, illegal, unhealthy, dense and seedy. It is the government’s duty and responsibility to regulate the housing environment in order to fulfill citizens’ welfare. Problems arise when the ability of the government budget is not enough to finance the improvement of slum areas. For those reasons, the government should invite other parties to jointly improve the neighborhoods in question. Facts have shown that during this time, the cooperation between the government and the private sector has always failed to transform the slum. This paper will explore the factors causing the failure of which is then used as a key success factor of public-private partnerships for urban renewal in Jakarta.