Collaboration Between Agencies Accelerates Implementation of the Subsidized Housing Program
By: Rahman Prawira)*
Decent and affordable housing is one of the most basic needs for the community. The successful implementation of this program on a large scale through the Subsidized Housing Program is a prestigious milestone of President Prabowo Subianto’s administration. In recent weeks, collaboration between state agencies has played a central role in accelerating the program’s implementation, from financing to construction to distribution.
Minister of Housing and Settlements (PKP), Maruarar Sirait, emphasized the importance of synergy with financial institutions to accelerate the realization of subsidized housing. Support from Bank Indonesia (BI) demonstrates the synergy between financial institutions in President Prabowo’s subsidized housing program. The construction of subsidized housing continues to show a positive trend, so the 3 million housing program requires the involvement and synergy of various parties, including BI.
Meanwhile, Bank Indonesia (BI) Governor Perry Warjiyo stated that BI supports housing programs, including public housing, through two mechanisms. First, by providing liquidity incentives to banks that distribute loans. Second, BI also funds and provides funding for special public housing programs.
This collaboration manifests itself in financial support from Bank Indonesia (BI) in the form of Rp 80 trillion in liquidity incentives through a reduction in the Minimum Reserve Requirement (GWM), which has been disbursed by banks to the public housing sector. Furthermore, BI has contributed Rp 155 trillion in Government Securities (SBN) purchases, approximately Rp 45 trillion of which is focused on public housing. This step reflects BI’s commitment to promoting inclusive and impactful housing sector growth.
Another strategic step is being implemented through collaboration with national banks. At the signing of a Memorandum of Understanding (MoU) with Bank Rakyat Indonesia (BRI), the government, for the first time in history, set a subsidized housing quota for this year at 350,000 units and encouraged BRI to expand its distribution as the primary bank for subsidized mortgages (KPRS). This MoU is expected to accelerate the implementation of subsidized housing more smoothly and reach a wider audience.
Furthermore, BRI President Director Hery Gunardi stated that more than 101,000 KPRS units had been distributed by June 2025. This distribution was made with outstanding financing of nearly IDR 14 trillion, 97% of which was through the Housing Financing Liquidity Facility (FLPP) scheme. BRI also exceeded its July target, disbursing 105.88 percent of the 17,700 unit quota.
In addition to financial institutions, this collaboration also spans across ministries. Subsidized housing will be available nationwide as a manifestation of social justice. The Ministry of Home Affairs (Kemendagri) has provided concrete support through a Memorandum of Understanding (MoU) between the Ministry and the Public Housing Savings Management Agency (BP Tapera). Through this agreement, the Ministry provides a special quota of 2,000 subsidized homes for civil servants, facilitates the registration of 1,190 employees in the FLPP mortgage program, and expedites administrative processes such as Land and Building Acquisition Fees (BPHTB) and Building Approvals (PBG) to facilitate access to adequate housing for civil servants.
During the symbolic handover of subsidized housing keys to Ministry of Home Affairs employees , Maruar stated that the FLPP mortgage installment for employees is only Rp 1.7 million per month, significantly lower than the rental costs of around Rp 2–3 million per month. He also commended the Ministry for its support of the pro-people program, noting that the Ministry’s support in this process was implemented quickly and with full oversight.
Collaborative efforts are not limited to government institutions. The Ministry of Maritime Affairs and Fisheries has also established a partnership with the Indonesian Ulema Council (MUI). The signing of an MoU between the Ministry and the MUI, along with the presentation of symbolic keys to Islamic teachers and activists, demonstrates the government’s commitment to social groups that have traditionally been underserved by housing programs. Furthermore, with the support of sharia-compliant financing through Bank Tabungan Negara (BTN) and BP Tapera, a target of 5,000 subsidized housing units can be distributed to Islamic preachers, Islamic teachers, and activists by 2025.
Collaboration between institutions ranging from Bank Indonesia, national banks, the Ministry of Home Affairs, and the Indonesian Ulema Council (MUI) has created an increasingly robust ecosystem. Integration of funding support, quota expansion, bureaucratic simplification, and data provision and social distribution are key to accelerating the achievement of subsidized housing targets. The government has demonstrated that this policy is highly pro-people, inclusive, and structured.
The public needs to respond to this spirit with enthusiasm. This is a positive development for those who don’t yet own a home, as they can take advantage of this opportunity through the FLPP mortgage scheme. The government is commended for its concrete steps in accelerating the provision of adequate housing. Its clear direction reflects a commitment to improving housing access. The synergy between the Ministry of PKP, Bank Indonesia, and BRI demonstrates coordination in providing financial support.
The Ministry of Home Affairs also facilitated the process by simplifying regulations, while the involvement of religious leaders reflected the social dimension being addressed. Through this collaboration, the government affirmed its commitment to reaching affordable housing in remote areas of the country, while ensuring that policies address the immediate needs of the community. All of these steps serve as concrete evidence that pro-people policies are expanding across all social strata through the Subsidized Housing program, addressing the challenge of the national housing backlog .
*)The author is a government policy observer
