Jakarta – The government has reaffirmed its strong commitment to providing decent housing for low-income communities through a significant increase in the national housing budget for 2025. Minister of Housing and Settlement Areas (PKP), Maruarar Sirait (Ara), emphasized that this additional funding will serve as a major driver for accelerating the construction of subsidized housing across Indonesia.
“This budget increase is not only focused on physical development but also on improving governance, transparency, and the effective use of public funds,” Ara stated.
He added that the home renovation program will also see a substantial rise—from 45,000 units this year to 400,000 units next year.
One of the government’s top priorities is the expansion of subsidized housing projects, with the target increasing from 200,000 units in 2025 to 350,000 units. This initiative aims to broaden access to homeownership for low-income citizens while promoting equitable housing development nationwide.
In addition, the distribution of Housing Microcredit (KUR Perumahan) will be strengthened, with total financing reaching Rp130 trillion.
“An increased budget must go hand in hand with stronger governance and accountability,” Ara emphasized.
The rise in funding is also accompanied by tighter oversight. Ara highlighted that regular consultations with the Financial and Development Supervisory Agency (BPKP) are being conducted to ensure all spending aligns with principles of good governance. As of now, the PKP Ministry’s budget absorption rate has reached 74.56 percent, demonstrating a high level of commitment to executing national priority programs.
Heru Pudyo Nugroho, Director of BP Tapera, reported that the realization of subsidized housing distribution through the Mortgage Liquidity Facility (FLPP) has reached 213,630 units, or 61.03 percent of the 350,000-unit target.
“We highly appreciate the support from the entire housing ecosystem — from participating banks to developers — who have worked together to accelerate FLPP disbursement,” said Heru.
Meanwhile, Sri Haryati, Director General of Urban Housing at the PKP Ministry, stated that as of November 4, 2025, there were 86 borrowers who had accessed Housing KUR funds totaling Rp182.9 billion.
“The contractor sector remains the largest user of Housing KUR, followed by developers and building material entrepreneurs,” Sri explained.
The government continues to stress the importance of equitable housing development. Subsidized homes must be distributed across all regions of Indonesia to achieve social justice for all citizens. Through the FLPP and KPR Sejahtera subsidy schemes, low-income families can obtain homes with low interest rates and long tenors.
Beyond its social benefits, the subsidized housing program also serves as a catalyst for the people’s economy. Housing projects create jobs, boost purchasing power, and stimulate new economic centers within residential areas.
With this strong commitment, the government ensures that the increased budget allocation is not merely a number on paper, but a tangible step toward improving public welfare. The ambitious targets — 350,000 new subsidized homes and 400,000 home renovations next year — underscore the government’s serious resolve to provide decent housing for all Indonesians.