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View all search resultsMinistry proposes Bulog-like offtake agency for subsidized housing
In a bid to accelerate absorption and address the national backlog, the housing ministry has proposed setting up a Bulog-like agency to purchase completed homes from developers for reselling to the market under the government's "3 million homes" program.
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Misty hills contrast with non-landscaped grassy areas in a subsidized housing complex on Jan. 6, 2020, in Bogor, West Java. (Antara/Yulius Satria Wijaya)
T
he Public Housing and Settlements Ministry has proposed forming an offtake agency to purchase subsidized homes from developers to help address the country’s long-standing housing backlog.
Deputy housing minister Fahri Hamzah presented the plan on Friday during his meeting with State-Owned Enterprises (SOEs) Minister Erick Thohir, noting that such an agency would help overcome one of the sector’s major hurdles by ensuring the absorption of subsidized homes in the market.
“The backlog has reached 10 to 15 million units, but why do construction companies still struggle to sell homes? This indicates a structural problem,” Fahri said in a statement.
Likening its role to that of the State Logistics Agency (Bulog) in absorbing rice from farmers, Fahri said the proposed entity would purchase subsidized homes, particularly those built on government-approved land as part of the “3 million homes” social housing project, and then resell them to the market.
The ministry defines social housing as all houses developed with government assistance, including for land acquisition, construction and mortgage financing.
Fahri said all types of subsidized housing, from landed houses to vertical units, would be covered under the offtake scheme.
He added that the new agency would employ a revised subsidy scheme that channeled the housing finance liquidity facility (FLPP) for land.
