Jakarta – The government continues to demonstrate its commitment to the people through increasingly affordable and equitable subsidized housing programs. A strategic shift from financing-based subsidies to land-based subsidies marks a significant breakthrough, aimed at ensuring that all citizens—especially low-income communities (MBR)—can access decent housing without being burdened by high land prices in urban areas.
Deputy Minister of Housing and Settlement Areas, Fahri Hamzah, stated that land subsidy schemes can significantly reduce the cost of subsidized homes, particularly in strategic areas such as Jakarta.
“It could even be less than IDR 200 million, to be honest. We are currently conducting detailed calculations. I’ve found figures that could be lower—provided the land is given for free,” said Fahri.
By utilizing underutilized state-owned land, such as in Kebayoran and Kalibata, the government plans to develop integrated social housing in city centers. This not only promotes cost efficiency but also alleviates the daily commuting burden of urban workers who currently travel long distances in and out of the city.
“If converted into social housing, it would help prevent people from having to leave the city every morning and night,” Fahri further explained.
This transformation is also part of President Prabowo Subianto’s broader vision to address the housing crisis in a comprehensive and sustainable manner. This year, the government targets the construction of one million housing units, of which 350,000 will be subsidized. This marks the largest housing achievement in Indonesia’s history.
Minister of Housing and Settlement Areas, Maruarar Sirait, described the program as a “new chapter” in national housing policy.
He noted that this success would not have been possible without the support of multiple stakeholders, including the digital asset platform Danantara and the State-Owned Banks Association (Himbara), which together have provided IDR 130 trillion in funding to help realize decent housing for the people.
“We’ve never had 350,000 subsidized homes in a single year like we do now. Since Indonesia’s independence, this is the first time. It proves that President Prabowo stands with the people,” Maruarar asserted.
Alongside this policy reform, administrative obstacles such as the Housing Financing Liquidity Facility (FLPP) quota—long considered a bottleneck in accessing subsidized housing—are currently under review.
“That quota process is slow. In the future, people will be able to go directly to the housing provider without going through too many layers,” said Fahri, emphasizing the need to simplify bureaucratic procedures in housing services.
This commitment reinforces public confidence that development is not merely about infrastructure, but also about social justice and improving quality of life. The government is not only building houses—it is building hope and stability for the future of its people.
