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View all search resultsGovt drops foreign loan plan for Prabowo’s 3 million homes push
Public Housing and Settlements Minister Maruarar “Ara” Sirait stated that funding is now expected to come from the state asset fund Danantara, which plans to allocate Rp 130 trillion (US$8 billion) for the housing sector.
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Housing and Settlements Minister Maruarar Sirait and Finance Minister Sri Mulyani Indrawati hold a join press conference with other key stakeholders including Bank Indonesia (BI) Governor Perry Warjiyo, chairman of House of Representatives Commission XI Mukhamad Misbakhun, Deputy State-Owned Enterprises (SOEs) Minister Dony Oskaria and Deputy Finance Minister Suahasil Nazara in Jakarta on Feb. 21, 2025. (TJP/Ni Made Tasyarani)
T
he Public Housing and Settlements Ministry has dropped plans to seek foreign loans for President Prabowo Subianto’s 3 million homes program, opting instead to rely on domestic funding, particularly from the state asset fund Danantara.
“I personally withdrew the foreign loan proposal for the housing sector. It was not my initiative [in the first place], it came from my directors general,” said Public Housing and Settlements Minister Maruarar “Ara” Sirait on Tuesday, as quoted by Kontan.
The minister ultimately made the decision despite earlier efforts to attract foreign investment from countries such as the United Arab Emirates, Qatar, China, India and Singapore. A ministry official revealed on Monday that the government had specifically “postponed” its housing loan proposal to the Beijing-based Asian Infrastructure Investment Bank (AIIB).
Ara confirmed that he had consulted with the President before making the call and expressed his gratitude to foreign institutions that had established “good communication” during the initial discussions.
“I am ready to follow President Prabowo’s direction to be self-reliant by choosing not to depend on foreign loans in the housing sector,” he stated.
Instead, funding is now expected to come from Danantara, which plans to allocate Rp 130 trillion (US$8 billion), according to Ara. The funds will be channeled through state-owned banks as part of a housing microcredit program.
Ara hailed Danantara’s commitment as “real proof that the government is pro-people,” saying the funding would support President Prabowo’s target to construct and renovate up to 3 million homes each year.
