President Targeting a Million Houses Program Completed This Year
President Joko Widodo has a target for one million low-cost housing program that should be completed this year. The program is to target the needs of lower-middle class people who do not own their own home. For this year, the housing program will be built simultaneously in eight provinces.
“The housing development program for people is aimed to meet the shortage of houses in Indonesia that reached 13.5 million units,” Minister of State Secretary Pratikno said in Jakarta, Wednesday (6/5).
Pratikno said, about 60 percent, or as much as 603 516 of one million housing program is intended for low-income people.
The following home sales price for this class as follows:
Jabodetabek region Rp 120 million per unit
Java (besides Jabodetabek) to Rp 105 million per unit
Sumatra (except Bangka Belitung) to Rp 105 million per unit
Kalimantan Rp 118 million per unit
Sulawesi Rp 110 million per unit
Papua and West Papua Rp 165 million per unit.
While the rest, as many as 396 484 housing units, or 40 per cent is for the medium. The government allocated funds from the State Budget 2015 of Rp 13 trillion.
President Jokowi has inaugurated this program on 29 April in industrial area of Ungaran, Semarang, Central Java.
In order to accelerate the realization of this program, Pratikno added, President Jokowi has ordered his staff to create or modify existing policies. The policy among others, an increase in the upper limit of the free home of Value Added Tax (PPN) of a maximum price of Rp 140 million to Rp 300 million.
The houses are built by using the Housing Finance Liquidity Facility (FLPP) or subsidized house, will be sold at relatively low prices and low mortgage Interest.
“If commercial houses pegged 20 percent down payment, subsidized housing is simply setting an advance of 1 percent of the selling price. Similarly, Interest credit is only about 5 percent of which could be paid in installments of up to 20 years,” Pratikno said.
To finance the Million Houses Program, the government took cooperation with state-owned banks such as BTN. (ES)