As January 2025 comes to an end, the Prabowo-Gibran administration marks its first 100 days in office since taking over on October 20, 2024. Alongside their governance, the 3 Million Homes Program was launched, coinciding with the establishment of the Ministry of Housing and Settlement Areas.
What progress has been achieved, and what milestones have been reached so far?
Foreign Investment Interest
Another significant achievement of the 3 Million Homes Program is the entry of foreign investment to support housing development for low-income communities.
Minister of Housing and Settlement Areas Maruarar Sirait revealed that several foreign countries and companies have expressed interest in investing in the program. One notable example is Qatar, which has formalized its commitment through a Memorandum of Understanding (MoU) with the Indonesian government.
The entry of Qatari investors paves the way for more foreign investments from countries like the United Arab Emirates, Singapore, and major global companies such as Standard Chartered, Swire Group, Arup, Mott McDonald, and Turner & Townsend.
Speaking at an official ceremony for ministry officials at Wisma Atlet Kemayoran, Jakarta, on Thursday (January 30, 2025), Minister of of Housing and Settlement Areas, Maruarar Sirait—commonly known as Ara—stated that foreign investors are showing strong interest due to high public confidence in President Prabowo’s administration and the large potential of Indonesia’s property market.
“Prabowo’s program is serious. One proof is that I have been given the authority to revamp the FLPP scheme, which is unprecedented. The sole purpose is to increase the number of beneficiaries,” Ara explained.
However, Ara has yet to disclose specific investment figures or the number of housing units projected to be built through foreign investment.
A Golden Opportunity for the Property Sector
The influx of foreign investors into the 3 Million Homes Program presents a golden opportunity to accelerate Indonesia’s property sector. Given the sector’s crucial role in economic growth, this momentum could be instrumental in achieving the government’s ambitious 8% economic growth target.
Furthermore, the high interest from international investors signals strong global confidence in the Prabowo-Gibran administration, reinforcing Indonesia’s position as an attractive destination for large-scale housing investment.
Realization of Subsidized Home Ownership Loans
One of the most visible advancements in the 3 Million Homes Program is the distribution of subsidized home ownership loans through both the Liquidity Facility for Housing Financing (FLPP) scheme and non-FLPP schemes.
Within the first 100 days, the realization of subsidized KPR reached 87,736 housing units, consisting of:
- 36,118 units under the FLPP scheme,
- 1,384 units financed through the Public Housing Savings (Tapera) scheme (for civil servants), and
- 50,234 units in the process of credit approval and construction.
Based on these numbers, the government has decided to continue the FLPP scheme as a core component of the 3 Million Homes Program.
However, changes in funding proportions are being finalized, with the allocation shifting from 220,000 units to 270,000 units and a funding ratio of 60% from the state budget and 40% from the private sector. Previously, the APBN covered 75%, while the private sector only contributed 25%.
Regulations and Financing Policies
Another major development in the 3 Million Homes Program during this period is the exemption of the Land and Building Rights Acquisition Fee, enacted through a Joint Ministerial Decree involving the Minister of Home Affairs, the Minister of PKP, and the Minister of Public Works.
This policy eliminates the 5% BPHTB fee for low-income home buyers, which is typically collected by local governments. The objective is to boost the sales of subsidized housing at the regional level and facilitate homeownership for first-time buyers.
Additionally, the government has implemented a policy to waive fees and accelerate the approval process for Building Approval Permits at the regional level. This initiative eliminates PBG retribution fees and expedites permit issuance for developers constructing subsidized housing.
By easing these regulations, the government aims to reduce the financial burden on developers, whether they are building landed houses or vertical housing. This, in turn, is expected to make housing prices more affordable for the public.
Source: kumparan.com, tribunnews.com, antaranews.com
Special Photo Credit: ANTARA/HO-Kementerian PUPR
