His clear message came up after the government issued its 13th economic stimulus policy package in late August, which aims to simplify procedures for development of inexpensive housing targeted at the lower segment of the society.

With lesser permits and period to tackle administrative stuff, the cost will be pushed down by 70 percent.

Speaking at the opening of the Indonesian Real Estate Association (REI) national meeting on Tuesday, the president expressed his determination to reduce the housing backlog which currently stood at 11.8 million houses.

The official target is to cut down the figure by more than 40 percent to 6.8 million by the end of his term in 2019.

 “I want to remind us all that the core of the economic policy package is to accelerate provision of affordable housing for low-income people and I emphasize once more, [it’s] housing for low income people, not the other [kinds of housing],” Jokowi said in his remarks.

According to the existing rule, developers must build houses for the poor and middle-income people in the same regency or city where they built upscale homes.

However, the obligation has been largely ignored by developers due to complicated permit requirements and lengthy process.

“Please avert constructing [using the incentives] many houses bought as investment instruments by those who already own two or three houses. Instead use the to build more houses for low-income people,” the president said, adding that a government regulation (PP) as the legal base to implement the policy package would be issued soon.

Under its current plan, the government aimed to construct 1 million houses for the low-income segment next year, up from only around 700,000 in 2016 and 690,000 in 2015, Public Works and Public Housing Minister Basuki Hadimuljono told journalists in the sidelines of the event.

“With increased budgets, which are Rp 9.4 trillion (US$694 million) for FLPP [the government-backed mortgage] and Rp 9.2 trillion for low-cost apartment provision, and easier licensing process, we hope it will be faster and easier [for us] to achieve the 1 million houses target next year,” he said.

In the similar occasion, REI chairman Eddy Hussy demanded that the government revoke the tax for luxurious houses as it would affect affluent people’s appetite to buy posh properties.

“We expects the government to continue the FLPP and broaden this program to include urban dwellers with income ranging from Rp 4.5 million to Rp 7 million, who currently are not benefiting from the subsidy,” Eddy said.

At present, the middle-class is also struggling to own houses amid soaring property prices, untouched by the government’s housing programs that are mostly targeted at low-income group defined by its income of less than Rp 4 million per month.

Popular

Indonesia one step from Olympics after beating South Korea

Opposition weakens as rivals pledge support for Prabowo

Golden generation