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View all search resultsCost pressures, weak demand cloud govt housing program
The mass mortgage signing ceremony on July 30 came as the government attempts to revive housing distribution in spite of the mounting challenges facing Prabowo's "3 million homes" program, including slower disbursements, rising construction costs and weaker spending power amid unwavering demand.
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Newly built houses stand in pristine rows on Jan. 7, 2026, at a subsidized housing complex in Rajeg district, Tangerang, Banten. (Antara/Putra M. Akbar)
P
resident Prabowo Subianto held a mass signing ceremony on Thursday for 62,000 subsidized housing mortgages and Rp 880 billion (US$48.7 million) under the Housing Credit Program (KPP), even as developers warn that rising construction costs, lengthy licensing processes and weakening purchasing power continue to weigh on housing supply.
The ceremony in Batang, Central Java, comes as the government steps up efforts to revive housing distribution after loan disbursements slumped in the first half of 2026.
Two similar events were held last year for 26,000 housing units in September and for 50,030 units in December. On those occasions, the President said the government was exploring more innovative ways to accelerate housing development by studying successful models from other countries.
"If our nation wants to rise and transform, we must not be ashamed to learn from anyone," Prabowo said, citing India’s success in building 40 million homes over the past 12 years.
"We must have the courage to think differently, to learn from others, to take risks and to pursue innovation and breakthroughs," he added.
During his 2024 presidential campaign, Prabowo pledged to build 3 million homes each year, but achieving that ambitious target has met with unclear progress.
Data from the Public Housing Savings Management Board (BP Tapera) show that disbursements from the housing financing liquidity facility (FLPP) had reached 91,531 low-income households by the end of June, down around 24 percent from 120,976 recipients in the same period last year.
