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Developers lobby govt to expand low-cost housing program
REI has asked the government to increase the subsidized housing for this year, given that the market had absorbed 48 percent of the originally allotted 166,000 units to date and supply would likely run out by September.
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A newly developed subsidized housing complex stands on Jan. 6, 2020 at the foothills of a mountain range in Bogor, West Java. (Antara/Yulius Satria Wijaya)
P
roperty developers grouped in Real Estate Indonesia (REI) have asked the government to increase the 2024 quota for the government’s housing finance liquidity facility (FLPP).
REI central board chairman Joko Suranto said he had written to Public Works and Housing Minister Basuki Hadimuljono, stating that the current allocation of 166,000 units was unlikely to meet the demand for subsidized housing and to propose that the FLPP quota be increased this year.
“We sent the letter on May 14, 2024,” Joko said on Tuesday, as quoted by Bisnis.com.
He estimated that demand for low-cost housing would surpass 166,000 units by September, given that the market to date had absorbed 79,000 out of, or 48 percent of the existing quota.
“We propose [increasing the quota up to] 250,000 units. Pak [Mr.] Basuki conveyed a commitment to implement this during the 2023 national meeting,” he said, adding that the minister promised to increase the quota in line with market absorption.
Read also: 35-year mortgage unlikely to help RI homebuyers, experts say
The government has allocated Rp 13.73 trillion (US$834.2 million) from the state budget to subsidize housing loans for 166,000 units.
