By: Alexander Royce*)
As the challenges in the labor market become increasingly complex and global pressures persist, the government is demonstrating its commitment through strategic housing policies, including a subsidized housing program for workers. This step goes beyond simply providing housing, but also demonstrates the government’s strong commitment to improving worker welfare and maintaining national economic stability.
Minister of State Secretary Prasetyo Hadi emphasized that the establishment of the Termination of Employment (PHK) Task Force and job guarantees demonstrates the government’s commitment to workers as a vital asset. He stated that the government will not remain silent when there is a potential for mass layoffs and has even formed a cross-sectoral task force to detect layoff risks early and facilitate dialogue between companies and workers, ensuring that reskilling and upskilling can also be part of prevention.
In line with this spirit of labor protection, concrete evidence has emerged in the housing sector of this government addressing workers’ needs. The subsidized housing quota for workers, originally 20,000 units, has now been increased to 50,000 units by the end of 2025. Minister of PKP Maruarar Sirait firmly approved Minister of Manpower Yassierli’s proposal to increase the quota after seeing the realization of more than 36,000 units, exceeding the initial target. This demonstrates the high enthusiasm of workers for this program.
According to Maruarar, the synergy between ministries and housing stakeholders marks a positive and productive collaboration. He highlighted the role of the developer association in providing free down payments for BPJS Ketenagakerjaan participants, an unprecedented initiative that strengthens the housing subsidy policy ecosystem. Banks, such as BTN, are also encouraged to play a leading role as primary distributors of subsidized housing, which is believed to have a significant multiplier effect on the people’s economy.
Minister of Manpower Yassierli welcomed this policy. He emphasized that subsidized housing not only increases housing but also creates new jobs and stimulates economic growth. He believes cross-sector collaboration demonstrates shared concern for laborers and workers. The successful increase in the quota to 50,000 units by the end of this year is also considered a swift response to the high demand from the working community.
The government’s responsiveness is reinforced by broader policies. The President expanded the national subsidized housing quota from 220,000 units to 350,000 units, while also providing VAT exemptions for homes valued under Rp 2 billion (approximately US$200,000) and other fiscal incentives, such as exemptions from the Land and Building Tax (BPHTB) and the Building Tax (PBG) for low-income residents (MBR), all to lower the cost of home ownership.
In the context of employment, Minister of Manpower Yassierli did not only focus on housing. At the Indonesia Human Capital & Beyond Summit forum held on September 3, 2025, he emphasized the importance of creating “next practices,” new practices that combine global standards with local wisdom, to address the demands of the future world of work. He stated that workers should be viewed as talents and national assets, not burdens, especially in the era of digital disruption, artificial intelligence, the green transition, and the dominance of millennials and Gen Z. A people-centered approach, including the development of emotional intelligence, design thinking, and learning agility, is believed to be key to national workforce resilience.
With such a comprehensive approach, including protection against layoffs, sector synergy, promotion of adequate housing, and transformation of the employment paradigm, this administration demonstrates concrete and measurable steps in safeguarding the people’s well-being. Beyond providing housing, the government also provides certainty and ongoing support so workers feel valued and have a brighter future.
This subsidized housing program, besides symbolizing the government’s concern for workers, also serves as an economic stimulus. The construction sector is reviving, building materials specialists are involved, jobs are being created, and the benefits are being felt across the country. All of this is combined with synergy across ministries and agencies, from the Ministry of Manpower, the Ministry of PKP, to the Statistics Indonesia (BPS), which guides this policy toward being inclusive, productive, and pro-people.
At a macro level, this policy also supports the development of decent housing, addresses the homeownership backlog, and improves the quality of settlements. The government’s focus extends not only to individual workers but also to strengthening their living environments, ensuring that worker well-being becomes the foundation for more advanced socioeconomic development.
The government has demonstrated that housing development is not just a matter of numbers, but a concrete manifestation of the spirit of mutual cooperation, effective state intervention, and a sustainable vision for the people. The effort to expand the quota from 20,000 to 50,000 subsidized homes this year demonstrates this commitment to sustainability, progressiveness, and solutions.
With this kind of genuine enthusiasm, we are optimistic that worker welfare will continue to improve, communities will become stronger, and the economic climate will become more robust, leading Indonesia towards more equitable and sustainable progress. The government has proven to be present, on the side of the people, and working for the people.
*) The author is a social observer
