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Government expects to disperse $450m WB housing loan
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A worker at a housing project. (kontan.co.id/Carolus Agus Waluyo)
T
he government expects to start the first phase of dispersing a US$450 million housing loan from the World Bank in the middle of this year.
Public Works and Public Housing Ministry director general of housing procurement Syarif Burhanuddin said that the finalization of the administrative part of the loan should be done by April.
Up to $215 million of the loan would be used to finance non-subsidized houses. Another $215 million would be used to subsidize mortgages for low-income families. The remaining would be allocated to hire experts for the project.
The loan is to be disbursed over the course of four years. "So the whole loan will be disbursed by 2020 at the latest," he said recently as quoted by kontan.co.id.
(Read also: Secondary mortgage firm SMF books 88% financing growth)
In 2017, the government plans to build 30,000 to 40,000 houses with the Rp 450 billion (US$33.6 million) to be disbursed this year.
"If not all of the houses can be built this year, they will be built next year," Syarif added.
Public Works and Public Housing Minister Basuki Hadimuljono said the funding can also be used to help informal workers, which dominate the labor market, to get access to housing.
The government aims to build 1 million houses each year. (far/bbn)
