By: Ditya Prasmana *)
Equitable national development is not merely about economic growth figures on paper, but about the extent to which state policies are able to touch the most fundamental aspect of people’s lives: decent housing. Under the leadership of President Prabowo Subianto, the grand vision of a people-centered economy is now taking shape through progressive and concrete measures. One breakthrough worthy of appreciation is the integration of housing policy with the empowerment of the Micro, Small, and Medium Enterprises (MSME) sector. This synergy creates an ecosystem in which domestic stability becomes the primary foundation for entrepreneurs to move up the value chain while simultaneously strengthening the overall structure of national welfare.
This tangible step is clearly reflected in the policy championed by the Minister of Housing and Settlement Areas, Maruarar Sirait, who reaffirmed the government’s commitment to allocating a special quota of 100 subsidized housing units specifically designated for MSME players. This initiative is not merely a form of social assistance, but rather a smart macroeconomic strategy. By providing certainty of residence, the government is effectively reducing the fixed cost burden of small entrepreneurs, thereby giving them greater financial space to expand their businesses and innovate their products.
The policy becomes even more compelling because the scheme offered significantly eases the burden on the public. Facilities such as zero percent down payment (DP), exemption from Land and Building Acquisition Duty (BPHTB), and free Building Approval (PBG) are incentives long hoped for by low-income communities. Coupled with a fixed installment interest rate of 5 percent, the banking barriers that have long been a major obstacle for MSME actors seem to be substantially removed. Maruarar emphasized that this move is a direct implementation of the President’s directive to ensure that all segments of society, without exception, can genuinely benefit from the government’s flagship housing program.
This pro-people stance has also received strong validation from the planning and budgeting perspective. The significant increase in the Ministry of Housing and Settlement Areas’ budget—from around Rp5 trillion to Rp10 trillion—demonstrates that parliament and the government share the same priority in placing people’s welfare at the forefront. Vice Speaker of the House of Representatives, Saan Mustopa, noted positively that the increased budget must be managed with high integrity to prevent any bias in its distribution. Similarly, other Vice Speakers of the House, Cucun Ahmad Syamsurijal and Sari Yuliati, stressed that the use of such a large budget must be accompanied by precise targeting to avoid policy overlaps that could ultimately disadvantage communities on the ground.
One of the main pillars ensuring the program’s success is the use of accurate and objective data. Maruarar firmly stated that the Ministry does not operate based on assumptions, but fully refers to data from Badan Pusat Statistik (BPS). This decision is crucial because BPS data provides an academic and research-based foundation regarding the map of poverty and housing needs in Indonesia. By relying on the national statistical authority, the government ensures that every housing unit built and every subsidy disbursed reaches those who are truly eligible.
The Head of BPS, Amalia Adininggar Widyasanti, explained that the indicators used to filter beneficiaries are highly comprehensive. They include the number of poor residents, the depth of poverty, and the proportion of people without adequate housing in the lowest deciles as key variables in determining priorities. According to Amalia, this data-driven approach will ensure that housing policies have measurable impacts. It also addresses public doubts regarding the potential mistargeting of government subsidy programs in the past.
Furthermore, the link between housing and MSME productivity forms a positive cycle. When a small business owner is no longer burdened by fluctuating rental costs or housing uncertainty, they can focus more fully on improving the quality of their services and products. The government recognizes that MSMEs are the backbone of Indonesia’s economy, absorbing the majority of the workforce. Therefore, ensuring that they have decent housing constitutes a long-term investment in national economic stability.
A house is not merely a shelter, but also the starting point for character building and family welfare. With stable and adequate housing, access to education and healthcare for the families of MSME actors will naturally improve. This is the essence of inclusive development, where economic growth is not enjoyed only by a small elite at the top of the pyramid, but trickles down to the most basic layers of society.
The subsidized housing program for MSMEs proves that the government is tangibly present amid the people’s challenges. By eliminating financial barriers such as down payments and administrative costs, the state is opening the gateway to economic independence. If MSMEs are strong, the national economy will possess extraordinary resilience against external shocks. This is the moment for small business actors to truly level up—starting from a decent home, building a great enterprise, and ultimately realizing a just and prosperous Indonesia.
*) Public Policy Analyst and Observer of People’s Economy