Jakarta — The government has confirmed that the subsidized housing program will officially launch this September, as a swift response to President Prabowo Subianto’s state address, which emphasized the importance of providing decent housing for low-income communities, particularly laborers and workers.
Deputy Minister of Housing and Settlement Areas (PKP), Fahri Hamzah, stated that the program could only be executed once the 2026 State Budget (APBN) fully accommodates all of President Prabowo’s priority programs. Nevertheless, technical preparations have been finalized to ensure construction begins on schedule.
“Next month we will begin building 25,000 houses, and by December 2025, the target of 50,000 units will be achieved,” Fahri explained.
Minister of Manpower, Yassierli, added that the initial target of 20,000 subsidized housing units has now been revised to 50,000 by the end of 2025, due to high demand among workers.
“Workers’ enthusiasm for this program is very strong, which is why we decided to significantly increase the target,” Yassierli said.
Minister of Housing and Settlement Areas, Maruarar Sirait, emphasized that the program’s success relies on cross-ministerial collaboration and the full support of the national housing ecosystem.
“This is a remarkable collaboration between ministries and all housing stakeholders, realized through a subsidized housing program that brings tangible benefits to workers and laborers,” he stated.
Maruarar also highlighted the positive public reception toward current housing policies. This growing interest aligns with President Prabowo’s decision to increase the national subsidized housing quota from 220,000 units to 350,000 units.
In addition, the government has provided various incentives to improve housing access, such as exemption from Value Added Tax (VAT) for houses priced below Rp2 billion, exemption from Land and Building Acquisition Duty (BPHTB), and waiver of Building Approval (PBG) fees for Low-Income Communities (MBR).
“These policies represent effective state intervention to help people gain access to decent housing,” Maruarar said.
The subsidized housing program, he added, is not only aimed at reducing the high homeownership backlog but also at improving substandard housing conditions. This will be achieved through stimulus assistance, slum area revitalization, and the development of settlement infrastructure and facilities across various regions.
With the official launch in September, the government is optimistic that this program will serve as a milestone in improving the welfare of workers while addressing the challenge of providing affordable and quality housing. (*)