Jakarta – The government is accelerating the subsidized housing program as part of a real form of mutual cooperation economy and equal distribution of welfare. Until the first semester of 2025, the budget realization for the Housing Financing Liquidity Facility (FLPP) scheme has reached IDR 18.8 trillion and has successfully supported the construction of 115,930 housing units for low-income communities (MBR).
Finance Minister Sri Mulyani Indrawati said that the initial allocation of the housing finance budget in the 2025 State Budget was IDR 29.1 trillion. The details are: IDR 18.8 trillion for FLPP through BP Tapera, IDR 4.8 trillion for PT Sarana Multigriya Finansial (SMF), and IDR 5.5 trillion for down payment subsidies.
“We will continue to work with housing companies to support the development of self-help homes, with a target of reaching two million homes. Additional allocations will be prepared for implementation in the second semester,” said Sri Mulyani.
He added that the government is not only focusing on building new housing, but also improving the quality of existing homes. FLPP is called one of the priority programs of President Prabowo Subianto’s government which is expected to provide a multiplier effect for the national economy.
“Acceleration is increased, both in terms of scale and speed, so that each program provides a multiplier effect on the economy, opens up employment opportunities, improves community welfare, and encourages economic growth,” explained Sri Mulyani.
Efforts to support subsidized housing also came from the local government in North Sumatra. The Governor of North Sumatra, Bobby Nasution launched a policy to eliminate notary fees, provisions, and administration in the subsidized housing program. This step is the first in Indonesia and was announced ahead of the signing of a memorandum of understanding between the Ministry of PUPR, BPS, the North Sumatra Provincial Government, and all district/city governments throughout North Sumatra.
“We as shareholders of Bank Sumut agree to waive notary fees, provisions, and administration. This is a form of our support for the government’s program for the underprivileged,” said Bobby Nasution.
The subsidized housing program is considered a real form of mutual cooperation economy. In addition to meeting the needs of the community’s housing, this program creates jobs, drives the construction sector, and strengthens people’s purchasing power amidst global challenges.
In accordance with President Prabowo Subianto’s direct instructions, the FLPP housing development target was increased from 220,000 units to 350,000 units. This adjustment pushed the total budget requirement to IDR 47.4 trillion, with an allocation of IDR 35.2 trillion for FLPP, IDR 6.7 trillion for SMF, and IDR 5.5 trillion for down payment subsidies.
The government hopes that support across ministries, institutions, and local governments will continue to be established to ensure the sustainability of inclusive and equitable housing programs.
