House Subsidy Distribution Through FLPP Scheme Exceeds Target: Public Works Minister
Date 22 November 2020
The Government has renewed commitment to provide livable houses for low-income people through one of the ongoing housing mortgage (KPR) subsidy programs, namely the Housing Financing Liquidity Facility KPR (FLPP).
According to Minister of Public Works and Public Housing Basuki Hadimuljono, the Government has set aside a budget of Rp11 trillion in FLPP funds this year.
“The Government is committed to providing a decent housing for low-income people. We hope we can improve the quality of life of the beneficiaries by providing a more decent, healthy, and convenient house,” he said.
As of 18 November this year, he continued, the distribution of FLPP funds have stood at Rp10.522 trillion for 102,665 housing units or exceeding the set target of 102,500 housing units.
The FLPP subsidy until the end of this year is expected at 107,600 housing units, he said.
According to the Minister, the FLPP is disbursed by 42 implementing banks and each bank has a budget quota and total units that they must realize in the agreed year.
In the meantime, President Director of the Center for Housing Financing Fund Management (PPDPP) Arief Sabaruddin said that all implementing banks have fulfilled their obligations from the quota set.
“We’d like extend our appreciation to implementing banks for channeling the FLPP funds. The remaining budget will be realized immediately so this year’s distribution is above the target set. We will distribute the funds to 11 implementing banks,” he said, adding that to apply for FLPP subsidies, applicants can download the SiKasep application (Information System for Housing Subsidized KPR) via PlayStore.
By using SiKasep, they will be connected online with the Government, implementing banks, and developers using a host to host system, he added.
Meanwhile, for user verification process, SiKasep is directly connected to Ministry of Home Affairs which is also connected to FLPP data managed by the PPDPP BLU so that subsidies can be right on target.
Based on the PPDPP management control dashboard, as many as 255,635 prospective debtors have currently accessed the SiKasep application, 107,616 prospective debtors have passed the checking subsidy, 7,378 prospective debtors are in the verification process, 142 prospective debtors are in the process of submitting FLPP funds to PPDPP, and 102,665 debtors have enjoyed the FLPP funds, he added.
The provisions for obtaining FLPP subsidies include ownership of a landed house or flats, an interest rate of 5 percent per annum, a subsidy period of 20 years, a cash advance assistance subsidy (SBUM) of Rp4 million, 1 percent down payment, selling price according to the Decision of Minister of Public Works and Public Housing and free of VAT in accordance with the Regulation of Minister of Finance. (Ministry of Public Relations/UN) (MUR/EP)