By: Gavin Asadit )*
The Indonesian government has once again demonstrated its commitment to realizing social justice, especially in the housing sector, by targeting the symbolic handover of subsidized housing on May 1, 2025. This momentum coincides with the commemoration of International Labor Day, which is a symbol of solidarity and the struggle for workers’ rights, including the right to decent housing.
This subsidized housing program is specifically designed for low-income communities (MBR) who have had difficulty accessing housing through commercial schemes. This initiative is also part of a strategic step towards fulfilling the basic needs of the community while addressing the problem of the national housing backlog which is still quite high.
The Minister of Housing and Residential Areas, Maruarar Sirait, said that the government is preparing to hand over subsidized housing simultaneously in various regions on May 1, 2025. The areas that are the focus of the initial implementation of this program include West Java, Central Java, South Sulawesi, South Sumatra, South Kalimantan, and West Nusa Tenggara (NTB). The handover plan is not only ceremonial, but also an important milestone in the government’s long journey to realize the 3 million housing program that has been initiated by President Prabowo Subianto.
This subsidized housing program is part of the government’s grand strategy in providing easy access to housing for all levels of society, especially those included in the MBR category. In its implementation, the government offers a Home Ownership Credit (KPR) scheme with fixed interest and a long payment period. One of the advantages of this scheme is the relaxation of the loan-to-value (LTV) ratio of up to 100 percent, meaning that people can buy a house without a down payment. This is certainly good news for many young families or workers who have had difficulty collecting initial funds to own their own homes.
Meanwhile, Deputy Minister of Finance Suahasil Nazara stated that his party is ready to provide support for various pro-people housing programs such as 3 Million Houses. This is necessary because the property sector can open the investment tap while encouraging the industrial sector and opening up employment opportunities for the wider community.
On the other hand, the Government has also collaborated with a number of stakeholders to support this program, such as Bank Tabungan Negara (BTN), the Association of Housing and Settlement Developers (Himperra), and the Association of Housing and Settlement Developers throughout Indonesia (Apersi). Through this collaboration, the government seeks to ensure the availability of ready-to-occupy housing stock and accelerate the credit agreement process for prospective homeowners. In 2025, the government is targeting a quota for subsidized housing construction of 800,000 units, a drastic increase compared to 2024 which only reached around 220,000 units.
This ambitious step certainly has significant social and economic impacts. From a social perspective, the availability of decent and affordable housing will improve people’s quality of life. Those who previously lived in rented houses or unsuitable housing can now feel the comfort and security of having their own home. The psychological impact of owning a home is also very large, because it provides a sense of stability and certainty for families.
From an economic perspective, the construction of subsidized housing will spur the growth of the national property and construction sector. The supply chain of building materials, labor, and other supporting services will also move, opening up more jobs, and encouraging local economic activity around the construction site. In addition, home ownership can increase people’s productivity because they are no longer burdened by constant moving or high rental costs.
Regarding the selection of May 1 as the momentum for the handover of subsidized houses, the government wants to give appreciation to workers and laborers who have been the backbone of national development. Subsidized houses are not just physical facilities, but a symbol of the state’s presence in guaranteeing the basic rights of its citizens. The hope is that by having their own homes, workers can live a more peaceful, healthy, and prosperous life.
Minister of Manpower Yassierli emphasized that this program is a form of the President’s concern for the fate of workers. The handover of the first phase of 100 units, according to him, is the initial step of the target of a larger subsidized housing program. He also stated that the program is proof of the state’s concern for workers and laborers.
Overall, the 2025 subsidized housing program shows the government’s strong commitment to creating a more just and balanced way of life. This program is not just about building houses, but also building hope, social stability, and economic growth.inclusive. If it can be implemented sustainably and on target, this program will be one of the best legacies of the national housing policy.
With the target of handing over subsidized houses on May 1, 2025, the government emphasizes that housing is no longer a privilege, but a basic right that must be fulfilled for all Indonesian people, without exception. This step is a new hope for millions of Indonesian families to be able to live more decently and with dignity on their own land.
)* The author is an observer of social and community issues
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