JAKARTA – The Indonesian government is reinforcing its commitment to providing decent housing for low-income communities (Masyarakat Berpenghasilan Rendah or MBR). This year, the subsidized housing quota has officially been increased from 200,000 to 350,000 units, as part of a strategic effort to reduce the national housing backlog, which currently stands at 9.9 million units.
Minister of Housing and Settlements (PKP), Maruarar Sirait, announced that the mass launch of subsidized housing will take place in September 2025, with President Prabowo Subianto scheduled to attend the event.
“The subsidized housing launch is planned for September, involving around 25,000 units, and will be attended by the President,” said Maruarar.
The subsidized homes will be allocated to key segments of society, including farmers, fishermen, laborers, drivers, teachers, and journalists. The mortgage interest rate for these homes is just five percent, with a down payment of only one percent, significantly lower than for commercial housing.
The increased quota also applies to the Housing Financing Liquidity Facility (FLPP) program, with the government raising the target from 220,000 to 350,000 units for the 2025 fiscal year. State-owned Bank BTN (PT Bank Tabungan Negara Tbk) has been given a major mandate, with an allocation of 220,000 units, up from the previous 158,301 units.
BTN’s Director of Consumer Banking, Hirwandi Gafar, said the increase reflects the government’s strong commitment to expanding access to affordable home ownership.
“BTN is ready to accelerate FLPP distribution for 160,000 conventional units and 60,000 Sharia-compliant units. We’re also enhancing digital services to make access to subsidized mortgages easier,” he explained.
Through the Bale by BTN app, users can now search for properties, apply for mortgages, and track the application process entirely online. The Financial Services Authority (OJK) has expressed its support for the program through various policies that maintain prudential principles.
Private sector enthusiasm is also growing. Listed property developer PT Repower Asia Indonesia Tbk (REAL) is partnering with Riscon Group to develop 3,000 subsidized housing units in West Java, including in Bogor, Serang, and Sumedang. This project is projected to generate over IDR 500 billion in revenue over the next two years.
Ari Tri Priyono, Chairman of the Association of Housing and Settlement Developers (Himperra) and CEO of Riscon Group, said that the increased housing quota signals the government’s pro-people stance.
“We are grateful that under President Prabowo Subianto’s leadership, the government is showing strong attention to the housing sector,” Ari said.
With collaboration between the government, financial institutions, and property developers, the expansion of access to decent housing for MBR communities is expected to become a crucial milestone in achieving social justice in housing. (*/rls)