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Prabowo's 3 million homes program lacks clarity
National housing task force head Hashim Djojohadikusumo said on Jan. 20 that people would still need to pay installments for housing units provided by the program.
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A subsidized-housing complex in Bogor, West Java, is pictured on Jan. 6, 2020. (Antara/Yulius Satria Wijaya)
P
resident Prabowo Subianto’s ambitious 3 million homes program remains vague with questions raised over its implementation and its intended beneficiaries, yet the government insists multiple investors are committed to participating in the project.
It began when Housing and Settlements Minister Maruarar Sirait said in Oct. 29 last year that the housing units built through the program would be provided free of charge, explaining that this was possible with the help of local conglomerates and their corporate social responsibility funds, despite later saying on Dec. 10 that only some would be provided at no cost.
Under the flagship program, the government aims to build 1 million homes in cities and 2 million in villages across the archipelago every year, with the intention of making homeownership more affordable and reducing poverty.
National housing task force head Hashim Djojohadikusumo said on Jan. 20 that people would still need to pay installments for housing units provided by the program.
In the case of villages, the government would provide guarantees for installments paid by the residents, which are expected to amount to Rp 600,000 per month, Hashim said, adding that the Prabowo administration would allocate around Rp 18 trillion for the loan guarantees.
“The 2 million homes program in villages will be supported by the state budget. Local developers will be supported by state-owned banks [with] the government and the general public as the bank's customers,” Hashim said.
As for those to be built in the cities, there would be a separate scheme, which would be prepared by Housing and Settlements Minister Maruarar, Hashim said, adding that the government would also cooperate with state-owned lenders and local private developers.
