Housing and Settlement Minister Maruarar Sirait (left) speaks alongside Bappenas Head Rachmat Pambudy at the Presidential Palace complex in Jakarta. (RRI/Biro Pers Setpres)
The Indonesian government is set to build 400,000 houses in 2026, as part of President Prabowo Subianto’s 3 Million Homes Construction and Renovation Program.
Minister for Housing and Settlement Area Maruarar Sirait , stated in the Presidential Palace on April 6 that this program intends to provide decent housing. The government will sponsor renovations of uninhabitable houses, and provide a 5% interest subsidy for equitable accommodation.
Maruarar explained that the government will fund the house renovation agenda in all districts/cities in Indonesia, collaborating with the Central Statistics Bureau to determine which segments of society will receive assistance. To ensure the program reaches those most in need, the government is targeting renovations for communities in the 1st to 4th economic deciles, households in the lowest 40% of the national welfare group.
The minister said that this year, the government has made a large-scale housing policy, “[…] for home renovations, last year only 45,000 houses, this year 400,000 houses and steps are being prepared for even bigger ones in the future.” He maintained, “Don’t let it happen that the rich get it [houses], the needy get it, and the less fortunate don’t get it.”
As an accommodative measure, the Indonesian government is known to facilitate land access and ownership. This includes exemption from Land and Building Acquisition Fees for low-income earners and from Building Approval fees.
The Indonesian Government attempts to provide adequate housing by utilising land owned by state-owned enterprises. These lands are used to build vertical housing in both urban and rural areas.
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