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Developers complain over lack of clarity in housing program
Real Estate Indonesia (REI) central board chairman Joko Suranto says a lack of details on the program run by the Public Housing and Settlements Ministry is causing instability in the country’s property market.
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Subsidized houses are pictured under construction in Tasikmalaya, West Java. (Antara/Adeng Bustomi)
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roperty developers have demanded more details about President Prabowo Subianto’s flagship program to add 3 million houses and apartments to the country’s housing stock per year.
Real Estate Indonesia (REI) central board chairman Joko Suranto said a lack of clarity in regard to the program run by the Public Housing and Settlements Ministry had caused instability in the country’s property market.
“We as housing developers hope that President Prabowo is willing to tell us, industry players in the property sector, about the 3 million homes program and his view as the head of state about the program,” Joko said on Tuesday, as quoted by Bisnis.
Joko and other property association chairmen also called on the banking sector to formulate new funding schemes similar to the government’s housing finance liquidity facility (FLPP).
Read also: Prabowo's 3 million homes program lacks clarity
The associations noted that the distribution of subsidized mortgages was hampered by policy changes under Prabowo’s administration, with a switch from the initial plan to allocate 75 percent of the funds from the state budget and 25 percent from banks to 50 percent from each source.
Joko explained that the issuance of 220,000 FLPP mortgages this year had been put on hold with no clear explanation from the government.
