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Govt says price hike for subsidized housing won’t hinder uptake
Higher prices for subsidized housing will not have a major impact on the government’s plan to distribute 220,000 units to eligible buyers this year and next.
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An aerial picture taken on Aug. 4, 2021, shows a housing complex for residents in Jakarta, near the border with a neighboring province. (AFP/Bay Ismoyo)
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igher prices for subsidized housing will not have a major impact on the government’s plan to distribute 220,000 units to eligible buyers this year and next, which is the target set in the 2020-2024 medium-term national development plan (RPJMN).
The Public Works and Housing Ministry recently increased the maximum price at which landed houses can be sold to low-income earners in 2023 and 2024.
According to the ministry, the increase ranges from Rp 162 million (US$10,700) to Rp 234 million, depending on the type of property, representing an 8 percent increase from the previous limits set in 2019.
The increase for city-owned subsidized apartments (Rusun), also known as vertical housing, on the other hand, is still being discussed.
Herry Trisaputra Zuna, director general of public works and housing infrastructure financing at the ministry, said in a media briefing at his office on Friday that a new distribution target was now being calculated by the Public Housing Savings Management Agency (Tapera) but vowed that the new target was “at least equivalent” to the RPJMN's 220,000. Meanwhile, Tapera's initial target was to fund 229,000 units.
Herry said the higher subsidized house price caps were based on the average increase in construction costs, as reflected in the wholesale price index.
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