President Prabowo Calls for Acceleration of Subsidized Housing Program

Minister of Housing and Settlement Areas Maruarar Sirait delivers a press statement at the Presidential Palace, Jakarta, Monday (09/15). (Photo by: BPMI of Presidential Secretariat)

In a bid to accelerate the provision of subsidized housing to the people as one of the Government’s key priorities, President Prabowo Subianto met with Minister of Housing and Settlement Areas Maruarar Sirait at the Presidential Palace, Monday (09/15).

“First and foremost, allow me to express my appreciation to President Prabowo for his deep concern in the housing sector that has been proven by increasing the number of subsidized houses from 220,000 to 350,000 units this year,” Minister Maruarar Sirait told the press following the meeting.

During the meeting, the Minister also updated the President on the progress of subsidized housing program which realization has been showing a positive trend despite the expanded quota.

The Minister added that from 1 January to 15 September, the transfer of ownership of 175,662 housing units has been made to mark the ownership of the houses. Additionally, 45,000 housing units are currently under construction, ready for sale, and undergoing housing credit/financing approval. In total, there are 221,047 housing units.

He went on to say that the People’s Business Credit (KUR) scheme for housing program, valued at Rp130 trillion, is a groundbreaking initiative because there has never been a housing KUR program in Indonesia’s history, designed to stimulate both supply and demand of affordable houses for the people.

“Rp117 trillion will be allocated for supply side, so contractors, developers, and building material suppliers can apply for the credit which will be beneficial because the interest rate gets subsidy of 5 percent. If they take a loan from the bank, they have to pay 11 percent interest rate but the program gives 5 percent subsidy, reduced the rate to 6 percent,” he explained.

On the demand side, the KUR scheme will support micro businesses in housing sector. The Minister expressed belief that this policy will create greater opportunities for micro entrepreneurs to improve their welfare, for example, the owners of homestay, restaurant, or small food stall vendors who run a business from their home.

“President Prabowo is deeply concerned about Micro and Small-sized Businesses (SMEs), so the interest rate for loan ceiling up to Rp500 million is set as low as 6 percent,” he said adding that housing KUR program is the result of a successful cross-ministerial coordination. (BPMI of Presidential Secretariat) (RAS/MMB)