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View all search resultsHousing program to pivot to renovation in 2026
After a lack of progress in their 3-million-homes pledge this year, the government has signaled a shift in focus toward renovation rather than new construction.
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Low-income housing is seen in this photo taken on Nov. 13 on the banks of the Ciliwung River in Matraman, East Jakarta. (The Jakarta Post/Iqro Rinaldi)
T
he government has signaled a shift from new construction to renovation in its housing program as the backlog remains stubbornly high after President Prabowo Subianto’s first full year in office.
The President had entered office with the pledge to add 3 million homes a year, split evenly across urban, rural and coastal communities.
The program is not included in the 2026 National Strategic Projects (PSN) list, and Prabowo has admitted there are significant challenges in meeting national housing needs and much work remains to be done.
“Our aspirations are still a long way off, 29 million of our people still do not have homes,” he said on Dec. 20 at a signing ceremony for 50,030 homes subsidized through the Welfare Home Ownership Loan (KPR Sejahtera) program under the Housing Finance Liquidity Facility (FLPP) scheme.
“Our country is rich, but sometimes we need to correct ourselves. At times, we have not managed our wealth wisely. Now, we must manage it properly,” he added at the event held at the Pondok Banten Indah Housing Complex in Serang, Banten.
Separately, Deputy Public Housing and Settlements Minister Fahri Hamzah said some 6 million families faced a “double backlog”, as they lacked not only home ownership but were also living in inadequate housing.
The administration insists its housing plan, a key election promise of Prabowo, has not drifted off course, pointing instead to shifting priorities for 2026, most notably a tenfold expansion of renovation assistance, which it argues will accelerate habitability improvements.
