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Budget insufficient for building 3 million new homes, minister says
The housing minister has revealed that the 2025 budget allocation for building 3 million new homes is a little less than one-third of last year's, compared to his estimated fund of Rp 23.32 trillion required to meet the target.
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Rows of new houses stand on Aug. 1, 2024 at a subsidized housing complex in Puuwatu district, Kendari, Southeast Sulawesi. (Antara/Andry Denisah)
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ublic Housing and Settlements Minister Maruarar Sirait has raised concerns over a budget shortfall that could hinder President Prabowo Subianto’s plan to build 3 million new houses each year.
The newly restructured ministry is beginning its first year with a budget of only Rp 5 trillion (US$317.9 million), regardless of its task to develop of 1 million urban houses and 2 million rural houses.
“Our budget is Rp 5 trillion for 2025, but we're asked to build 3 million houses,” Maruarar said on Monday, as quoted by Bisnis.com.
To meet the target to build 3 million homes by 2025, Maruarar estimated that the housing ministry would need around Rp 23.32 trillion, almost five times the current amount.
As such, his office was exploring ways to reduce construction costs by eliminating land expenses and leveraging the use of confiscated land, he said, which could lower property costs by a maximum 40 percent.
Read also: Prabowo to revive Housing Ministry, plans Rp 53T as initial budget
Maruarar noted that the ministry’s 2025 budget allocation marked a sharp cut from the Rp 14 trillion earmarked in 2024 for the housing directorate general, which was part of the previous Public Works and Housing Ministry.
