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View all search resultsNew housing agency plan unnecessary, reduces efficiency, businesses say
Experts warned that the new body could overlap with the Housing and Settlements Ministry and BP Tapera, bloating the housing program with layers of bureaucracy.
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Lofty ambitions: A worker works on the roof of an under-construction house on Aug. 6 in a subsidized housing estate in Bogor, West Java. (Antara/Yulius Satria Wijaya)
R
eal estate industry players and policy experts have raised concerns over the government’s plan to establish a new standalone housing agency, warning that it risks bloating the bureaucracy, duplicating mandates and increasing fiscal costs without fixing the sector’s core problems.
Raymond Arfandy, secretary general of the Real Estate Indonesia (REI), said the proposal was “unnecessary” given the presence of the Housing and Settlements Ministry and the role of the Public Housing Savings Agency (BP Tapera), both of which were set up to strengthen housing policy and execution.
“It is not urgent and could instead only add to the cost burden on the state,” Raymond told The Jakarta Post on Wednesday.
“We are concerned the new body could overlap with existing institutions,” Raymond added, noting that the group had not been consulted and cautioning that the move could slow execution.
Deputy Housing and Settlements Minister Fahri Hamzah said the proposed housing agency would “consolidate” functions currently dispersed across multiple ministries and agencies to realize President Prabowo Subianto’s target of providing 3 million houses a year. These include land procurement, licensing, financing and housing management, which he said had slowed development.
“[President Prabowo] wants a major acceleration. The 2026 state budget already allocates funding to renovate around 400,000 homes, and he has even agreed it could go as high as 2 million renovations if needed,” Fahri told reporters at the State Palace in late December last year.
“But the one million homes planned for urban areas require a dedicated accelerated mechanism. Urban housing faces serious land constraints, which are extremely difficult to resolve,” he added.
