By: Naomi
Amidst the dynamics of national development and the public’s need for decent and affordable housing, the Indonesian government has launched a strategic breakthrough that brings new hope: the People’s Business Credit (KUR) Housing program. This program not only focuses on providing housing for low-income communities (MBR) but also strengthens the housing sector ecosystem as a driver of the national economy.
The KUR Housing program has officially been included in the government’s agenda through the Ministry of Housing and Settlement Areas (Kementerian PKP). Minister of Housing and Settlement Areas, Maruarar Sirait, stated that a budget allocation of IDR 130 trillion has been allocated for this program this year. This figure demonstrates the government’s significant commitment to addressing the housing backlog while strengthening related industries. The housing sector has a significant multi-sectoral character, encompassing developers, contractors, building material suppliers, material stores, and local labor. Therefore, the KUR Housing program is not only about housing but also about inclusive economic development.
Minister of MSMEs Maman Abdurrachman explained that the current KUR will be divided into four clusters: KUR for MSMEs, KUR for housing, KUR for migrant workers, and KUR for labor-intensive projects. The budget allocation for KUR for MSMEs is IDR 280 trillion, and KUR for housing is IDR 130 trillion.
In principle, the KUR for Housing scheme is designed with more affordable credit facilities, interest subsidies of up to 5 percent for developers and micro, small, and medium enterprises (MSMEs) in the housing sector. Similarly, the demand side—those wishing to purchase or renovate a home—is provided with easier access. A report states that KUR for Housing encompasses both the supply and demand sides.
The supply side is addressed through credit access for subsidized housing developers and small building material stores. The demand side, on the other hand, paves the way for those running small businesses at home or wanting to own their own homes. Thus, this program positions adequate housing as a basic right alongside improving people’s economic well-being.
Furthermore, KUR for Housing also aims to encourage MSMEs to upgrade. MSMEs can utilize this facility to grow and develop. Even previously underserved sectors are now receiving attention through this scheme: for example, brick manufacturers, sand suppliers, and small construction service providers. This step significantly strengthens the link between public housing development and local job creation.
BRI Bank President Director Hery Gunardi emphasized his company’s readiness to support the Housing Business Credit (KUR). He targets the disbursement of IDR 13 trillion in funds to be realized within 3 to 3.5 months.
In the context of broader targets, this program aligns with national agendas such as the 3 Million Houses Program, which aims to build and renovate millions of homes for low-income communities between 2025 and 2029. Housing Business Credit (KUR) is a crucial instrument for achieving this target, as it bridges the gap between the community’s needs and ability to obtain adequate housing.
An important note is that this program is not only for end-users but also touches the housing supply chain. By adding interest subsidies for developers and building materials stores, the government recognizes that expanding access to affordable housing is not only about building housing units, but also about ensuring optimal production and distribution chains. One article stated that the Rp 130 trillion allocation for the Housing KUR covers both the supply and demand sides, creating a double lever for the local economy.
Furthermore, the launch of the Housing KUR will be carried out with a simplified scheme so that the public is not trapped in complicated mechanisms. In a recent meeting, the Minister of PKP emphasized that banks must provide a mechanism that is quick and easy for the public. This demonstrates the government’s desire to ensure that policies are not just written down but can be implemented by those in need.
To ensure smooth implementation, the government is also collaborating with associations such as the Indonesian Real Estate Companies Association (REI), MSMEs, building materials stores, small developers, and local governments. Through this collaboration, the program’s dissemination in the regions is ensured. For example, in East Java, socialization and ecosystem preparation for the Housing KUR have been rolled out. Furthermore, mass contract ceremonies have been held in several regions to mark the start of the program’s actual distribution.
This scheme is also important in the context of equitable development across regions. Development is often concentrated in metropolitan areas, leaving outlying areas behind. By opening access to business and housing credit,The hope is to strengthen regional development and generate new economic activity in the regions.
Of course, the implementation of this program must be transparent, accountable, and oriented towards community needs. If so, the KUR Housing program can truly address the community’s housing needs, provide opportunities for many families to own their own homes, and become a driving force for local economic growth.
The KUR Housing program is a comprehensive approach: it combines social (adequate housing), economic (strengthening MSMEs and the ecosystem), and development (expanding access to credit) aspects. If implemented well, it will not only meet the housing needs of many people but also contribute to prosperity, equity, and national economic resilience.
)*Public Policy Observer
