Jakarta — The government continues to strengthen efforts to provide adequate housing for low-income communities (MBR) by expanding subsidized housing programs through more diverse and inclusive financing schemes. Through the Housing Savings Management Agency (BP Tapera), strategic measures are focused on optimizing the Housing Financing Liquidity Facility (FLPP), which has long served as the backbone of national housing financing.
BP Tapera Commissioner, Heru Pudyo Nugroho, stated that the performance of the FLPP program throughout 2025 has shown highly positive results. “The FLPP program demonstrated strong performance in 2025, achieving the highest realization since its inception,” he said. This achievement serves as an important foundation for strengthening housing financing policies in 2026.
However, the dominance of landed housing financing is considered insufficient to fully address the needs of urban communities. Therefore, BP Tapera has begun promoting the development of vertical housing as an alternative solution. “For that reason, in 2026 BP Tapera will start optimizing financing for apartment housing as an alternative solution for housing provision in major cities,” he explained.
In line with this, BP Tapera has set a strategic direction for FLPP 2026 through the SIP 350,000 housing units strategy. The program focuses on accelerating financing distribution by strengthening synergy among stakeholders, introducing financing policy innovations, and intensifying public outreach and education efforts.
To improve financing accessibility, several concrete measures have been prepared. These include extending mortgage (KPR) tenors up to 30 years, simplifying application processes, digitalizing services, and strengthening partnerships with banks, developers, and regional governments. These efforts are expected to broaden program access for low-income communities across various regions.
Meanwhile, the implementation of the FLPP program at the regional level has also shown significant progress. The Regional Office of the Directorate General of Treasury (DJPb) of the Ministry of Finance in South Sulawesi recorded FLPP disbursement realization of Rp229.74 billion for the construction of 1,838 subsidized housing units as of February 2026.
Head of the DJPb Regional Office of South Sulawesi, Hari Utomo, explained that the budget has been utilized for housing development across 22 regencies and cities. “The FLPP program has entered its second year, and as of February 2026, 1,838 housing units have been built with disbursements reaching Rp229.74 billion,” he stated.
Hari added that the FLPP program not only functions as a housing provision instrument but also has broad economic impacts. “The FLPP program contributes to socio-economic development by creating a consistently absorbed housing market, as subsidized housing is highly demanded due to low interest rates and affordable prices,” he noted.
Furthermore, he emphasized that the program generates multiplier effects for regional economies. “It supports job creation, increases activity in the construction sector, and strengthens people’s purchasing power,” he said.
With these innovations and policy enhancements, the government remains optimistic that expanding subsidized housing through alternative financing schemes will effectively meet public housing needs while promoting more equitable economic growth. (*)
