By: Dhita Karuniawati )*
The Indonesian government continues to demonstrate its commitment to addressing the national housing backlog by involving all sectors in the construction of subsidized housing. This subsidized housing program is part of a grand national strategy to realize social justice and improve the standard of living of the community, especially the low-income group (MBR).
The government’s efforts to foster cross-sector collaboration, ranging from financial institutions, developers, the private sector, to the community, show that the provision of livable housing cannot be the responsibility of only one party. Synergy between stakeholders is the main key to the success of the subsidized housing program comprehensively and sustainably.
The central government continues to strengthen the subsidized housing program through various schemes, one of which is the Housing Financing Liquidity Facility (FLPP). FLPP has become one of the main priority programs in the administration of President Prabowo Subianto. The President specifically asked all levels of ministries to accelerate the implementation of various priority programs, including FLPP.
In addition to FLPP, the government also distributes funds for the Self-Help Housing Stimulus Assistance (BSPS) program. This program is specifically designed for MBR so that they can build or repair houses independently. In 2025, the initial allocation of BSPS was recorded at IDR 1.45 trillion for 65,392 houses. This confirms that the government is not only focusing on building new houses, but also improving the quality of existing housing.
The Public Housing Savings Management Agency (BP Tapera) noted that it had distributed subsidized housing from the Housing Financing Liquidity Facility (FLPP) worth IDR 14.99 trillion throughout the first semester of 2025.
BP Tapera Commissioner, Heru Pudyo Nugroho said that the disbursement of IDR 14.99 trillion from the APBN was to distribute 120,976 FLPP housing units. The distribution of FLPP houses grew by 44.50% compared to the same period in the previous year, which was 83,720 units worth IDR 10.17 trillion.
Heru explained that the increase in distribution was driven by the enthusiasm to realize the 3 million housing program initiated directly by President Prabowo Subianto. This increase is inseparable from the enthusiasm of developers and distributing banks in making the 3 Million Homes Program a success. They greatly appreciate this collaboration and hope that this enthusiasm will continue to be maintained to help low-income people have decent homes.
In line with this, Heru admitted that he was optimistic that the distribution of FLPP would run smoothly in the future. The addition of the FLPP quota to 350,000 units will be fully absorbed in 2025. Thus, throughout the first semester of 2025, FLPP distribution has reached 54.98% of the initial target of 220,000. However, if referring to the new quota, which is 350,000 housing units, the current achievement has only reached 34.56%.
Previously, Finance Minister Sri Mulyani Indrawati said that the realization of state spending for the subsidized housing program through the FLPP scheme had reached IDR 18.8 trillion until the first semester of 2025.
The budget was used to support the construction of 115,930 housing units for low-income communities (MBR). Thus, the initial budget allocation for housing financing in the 2025 State Budget reached a total of IDR 29.1 trillion.
However, in line with President Prabowo Subianto’s direction to increase the scope of the program, the 2025 FLPP target was increased to 350 thousand housing units. This target adjustment has increased the budget requirement to IDR 47.4 trillion, consisting of IDR 35.2 trillion for FLPP, IDR 6.7 trillion for PT SMF, and IDR 5.5 trillion for down payment subsidies.
This budget increase was welcomed by PT Sarana Multigriya Finansial (Persero) or SMF, which also received a large mandate. SMF President Director Ananta Wiyogo said that SMF received an allocation of IDR 6.7 trillion to support this strategic program. This is proof of the government’s trust in SMF’s vital role in the national housing finance ecosystem.
Therefore, SMF will implement a number of strategies in the form of fund leverage and maximum collaboration. Ananta explained that SMF will leverage by issuing Bonds for a portion of 25 percent as accompanying funds for Housing Ownership Credit Housing Financing Liquidity Facility (KPR FLPP). This strategy will strengthen financing capacity and ensure that more people can access KPR FLPP.
SMF will also strengthen synergy with distributing banks to ensure that FLPP funds can be absorbed optimally, right on target, and reach those who really need them.
SMF’s commitment does not stop at distributing funds. Ananta also emphasized the importance of regular socialization and monitoring of FLPP distribution. This is done to maintain the quality of distribution and ensure that this program really targets the entitled community. Therefore, transparency and accountability are top priorities.
Ananta said that active collaboration between SMF, distributing banks, and other stakeholders is key to achieving the government’s goal of the 3 million housing program sustainably. This shows that the success of the national housing program is the result of solid multi-party cooperation.
The involvement of all sectors in the construction of subsidized housing proves that providing decent housing for the Indonesian people is a shared task. With synergy between the central and regional governments, the private sector, financial institutions, and the community, the dream of having a decent and affordable home is not impossible.
The government affirms its commitment to continue expanding public access to housing, because a house is not just a place to live, but the foundation of the future of the family and the nation.
)* Contributor to the Indonesian Strategic Information Study Institute
