Jakarta – The government is once again demonstrating its commitment to providing decent housing for low-income communities (MBR). Through the allocation of IDR 18.8 trillion from the State Budget (APBN), the government is rolling out the Housing Financing Liquidity Facility (FLPP) program to fund the construction of 115,000 subsidized housing units by the first half of 2025.
Minister of Finance Sri Mulyani Indrawati explained that FLPP is a key instrument for addressing the national housing gap. The government has also increased the FLPP target from 220,000 to 350,000 subsidized homes in order to accelerate home ownership for the people.
“FLPP is one of the key instruments in the #UangKita APBN to reduce the housing needs gap for the people, improve welfare, eradicate poverty, promote equitable development, and support national economic growth,” she stated, as quoted from her official Instagram account @smindrawati.
The total APBN allocation for the FLPP program has increased from IDR 18.8 trillion to IDR 35.2 trillion. Meanwhile, the allocation to PT Sarana Multigriya Finansial rose from IDR 4.8 trillion to IDR 6.7 trillion.
“This is one of the priority programs we will continue in 2026,” she added.
In implementation, the Ministry of Housing and Settlements (PKP) will ensure that 25,000–30,000 subsidized homes will be launched simultaneously across Indonesia this coming September. PKP Minister Maruarar Sirait (Ara) stated that the launch is part of the 3 Million Homes Program targeted for completion this year.
“Housing construction and renovation can be carried out by the government, from the central to the regional level, including SOEs. This also includes renovation efforts by institutions such as PT Sarana Multigriya Finansial (SMF) and PT Permodalan Nasional Madani (PNM), funded by the APBN and regional enterprises,” said Ara.
He also reported that the FLPP quota for this year has been increased from 220,000 to 350,000 units. Additionally, specific allocations have been set for target groups, including 20,000 units each for farmers, fishermen, laborers, and teachers; 8,000 units for drivers; and 3,000 units for journalists.
“One of the breakthroughs is that the interest rate is only 5% due to subsidies. Commercial housing has a 12% rate, and the down payment is only 1%, which makes this very attractive to the public,” he explained.
To support these efforts, PT Bank Syariah Indonesia Tbk (BSI) is also contributing by distributing FLPP-subsidized home financing for 10,000 housing units, amounting to approximately IDR 1.6 trillion. BSI’s Director of Sales & Distribution, Anton Sukarna, said that BSI recently partnered with BP Tapera and the Islamic Union (PERSIS) to expand access to FLPP home financing for MBR.
“BSI signed an agreement with BP Tapera and the Central Leadership of the Islamic Union (PERSIS). Together, BSI, BP Tapera, and PERSIS agreed on a joint commitment to provide access to FLPP housing and its financing,” Anton explained.
BSI is optimistic that with a relatively fast financing process, fixed installments, and a long repayment term of up to 20 years, the absorption of its FLPP mortgage product will be maximized.
Furthermore, BSI stated its full support for the FLPP program in alignment with the government’s Asta Cita goals for public welfare. This collaboration marks BSI’s commitment to boosting the effective distribution of FLPP financing while maintaining quality standards.
“The BSI KPR Sejahtera FLPP program is our company’s support for the 3 Million Homes Program. It aligns with the government’s mission to improve public welfare. We are continuously expanding our reach to high-demand areas so FLPP financing can be absorbed optimally,” Anton concluded.
