By: Veritonaldi )*
The Indonesian government has shown a serious commitment to improving the welfare of workers by providing decent and affordable subsidized housing. This initiative is a concrete step that not only strengthens social protection for workers, but also marks a new era in which workers are increasingly recognized as pillars of national development. The commencement of the handover of subsidized housing on May 1, 2025, coinciding with International Labor Day, marks an important chapter in the long journey of workers’ struggle towards a better life.
This program was initiated by the Ministry of Housing and Settlement Areas (PKP) under Minister Maruarar Sirait, which is fully supported by the Ministry of Manpower and the Central Statistics Agency (BPS). The signing of the Memorandum of Understanding between these three institutions is a solid foundation in building cross-sector synergy to realize decent housing for workers. Minister Maruarar stated that this subsidized housing is a real form of government support for workers, while also answering basic needs that have often been a heavy burden for low-income workers.
As an initial form of program implementation, the government will hand over 100 house keys to workers in the Jabodetabek area. This is part of a larger plan, namely the construction and distribution of 20,000 subsidized housing units that will be specifically designated for workers. This step is in line with President Prabowo Subianto’s direction, which emphasizes the importance of the state’s presence in ensuring the welfare of the people, especially the labor group who have been the backbone of the national economy.
Minister of Manpower, Yassierli also emphasized that the provision of subsidized housing is not just a technical policy, but a form of the government’s deep concern for the real conditions of workers. He assessed that this program would have a significant impact on the productivity and welfare of workers, while strengthening industrial relations between the government, employers, and workers. In the long term, the availability of decent housing will have a positive psychological impact that supports the stability of workers’ families, increases work motivation, and encourages inclusive economic growth.
This policy is also designed inclusively by considering various aspects, ranging from price, location, to requirements that are adjusted to the abilities of workers. BP Tapera Commissioner, Heru Pudyo Nugroho explained that workers who want to access this program must be included in the Low-Income Community (MBR) category, have not owned a house before, and have never received housing subsidies from the government. The financing scheme through the Housing Financing Liquidity Facility (FLPP) with a fixed interest of five percent and a maximum tenor of 20 years is considered very light.
The price of subsidized houses is also set according to the purchasing power of workers in each region. In the Jabodetabek area, the maximum price of a house is set at IDR 185 million, while in Java and Sumatra (outside Jabodetabek) it reaches IDR 166 million. In other regions such as Sulawesi and Kalimantan, house prices range from IDR 177 million to IDR 182 million, while in eastern Indonesia such as Maluku and Papua it reaches IDR 240 million. The payment scheme is also designed to be light with a down payment of only one percent of the house price, as well as installments that cover various types of insurance such as life insurance, fire, and credit.
Interestingly, this subsidized housing not only pays attention to price and financing aspects, but is also designed to be close to industrial areas. The goal is so that workers do not have to travel long distances from home to work, which has been one of the latent problems in the lives of urban workers. This strategic location will greatly help reduce transportation costs and improve the overall quality of life of workers.
These steps show that the government understands the urgency of the housing problem faced by workers. So far, home ownership has been an elusive dream for many workers due to high prices, limited access to financing, and minimal availability of housing in strategic locations. Through this subsidized housing program, the government is not only building physical houses, but also building hope and a better future for workers’ families throughout Indonesia.
From a public policy perspective, this program is a form of positive and biased state intervention. The government does not completely hand over the responsibility for welfare to market mechanisms, but is directly present in providing essential basic needs. This is in line with the principle of a welfare state that places housing as a basic right of citizens.
In the future, the success of this program is highly dependent on the coordinationcross-institutional incorporation, easy access to information, and a fair and transparent verification system. In addition, the active role of labor unions and workers’ unions is needed to support socialization, data collection, and assistance for their members in the process of applying for subsidized housing. The spirit of mutual cooperation between the government, workers, and the private sector is the main key so that this program not only runs, but is also sustainable.
Overall, the provision of subsidized housing for workers is a monumental step that deserves appreciation. This policy not only provides short-term benefits in the form of decent housing, but also creates a strong foundation for long-term social stability and economic growth. The government through this program has sent a clear message that labor welfare is not just a slogan, but is an important part of the inclusive and equitable national development agenda.
)* The author is a Social Observer
