The housing crisis in Indonesia has been a pressing issue for years. According to data from the Ministry of Public Works and Housing (PUPR) in 2023, the housing backlog reached 12.7 million units, meaning there are still many Indonesians without decent homes. To address this challenge, President Prabowo Subianto has reaffirmed his commitment to realizing the 3 million housing program.
As a concrete step, the government is collaborating with the private sector, developers, and industries to participate in the construction of homes for the people. Minister of Public Works and Housing (PKP), Maruarar Sirait, emphasized that cooperation with the private sector is crucial in accelerating the realization of this program. He pointed out that industries that build housing for their employees can also be part of the solution to Indonesia’s high housing backlog.
One of the main challenges in realizing this program is funding. The Head of the Housing Task Force (Satgas), Hashim Djojohadikusumo, revealed that the government will assign the State-Owned Banks Association (Himbara) to support the financing of this housing program. In addition to state-owned banks, support will also come from foreign investors and Bank Indonesia, which is ready to allocate Rp130 trillion to support the housing development financing.
Hashim pointed out that the funds in Indonesia are actually abundant but have not been optimally allocated to the real economic sector. Funds spread across BPJS, State Securities (SBN), and Bank Indonesia can be utilized to drive the housing sector. With the right strategy, these funding sources can become a driving force for more massive and sustainable housing development for the people.
In addition to building new homes, some companies are also taking initiatives to help renovate uninhabitable homes (Runtilahu) for low-income communities. For example, Wilmar Group has been running a program to repair uninhabitable homes in Serang, Banten, since 2024. According to the Head of Industrial Estate at Wilmar, Byron Oswald, this program aims to create a multiplier effect for the community, both in terms of welfare and economy.
These renovations cover essential aspects such as better sanitation, improved airflow, strengthening the building structure, roof replacement, and adding kitchens and additional rooms to ensure the homes meet healthy and habitable housing standards. Such initiatives can complement the 3 million house program, ensuring that people not only get a place to live but also a truly decent home that meets health standards.
The 3 million housing development program is not just about providing homes; it also has wide social and economic impacts. With the increasing availability of affordable housing, people’s quality of life will improve, especially for low-income groups who have struggled to obtain decent housing.
Economically, the program is expected to create a significant multiplier effect. Housing development will open up job opportunities for construction workers, increase demand for building materials, and encourage the growth of the property sector and related industries. On a larger scale, this program could also drive national economic growth through investments in the housing sector.
In addition, this program will also be used to relocate citizens living in disaster-prone areas, such as flood-prone regions. By moving people to safer, more habitable locations, the government can reduce disaster risks and improve the well-being of communities in vulnerable areas.
Limited land, especially in urban areas, is one of the main obstacles in building homes for the people. Therefore, the government is working with local governments and the private sector to identify available land and ensure that permits proceed smoothly. The government is also ensuring that the funding schemes used are not only effective but also sustainable in the long term.
This program not only focuses on quantity but also on quality. Housing standards are enforced to ensure that the houses built are truly livable, with access to clean water, sanitation, and other supporting infrastructure.
The 3 million house program is a potential solution to the housing crisis in Indonesia. The success of this program depends on the synergy between the government, the private sector, banking institutions, and foreign investors in providing decent housing. With full support from all parties, the realization of this program can run more effectively and on target. This initiative not only reduces the housing backlog but also drives economic growth and the welfare of society.
More than just fulfilling the need for housing, this program can become an economic driver that creates jobs, increases purchasing power, and strengthens the national property sector. With strong synergy among various stakeholders, Indonesia can move toward a more inclusive and sustainable housing future, where every citizen has the opportunity to own a decent home.
The writer is a policy observer.
