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View all search resultsGovt under pressure as 3 million home drive hits cracks
The Independent Housing Stimulus Assistance (BSPS), which helps homeowners renovate their houses, had reached only 32.5 percent of its 400,000-unit target for 2026 as of Sept. 17.
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A residential housing area is seen on June 18 in Palangka Raya, Central Kalimantan, Indonesia. According to data from the Public Housing and Settlements Ministry, the national 3 Million Homes program had reached 324,213 completed housing units as of June 13. (Antara/Auliya Rahman)
T
he government is struggling to meet President Prabowo Subianto’s target of building 3 million homes a year, with data showing that key supporting programs are falling behind their milestones. While potential assistance from countries such as China could help bridge the gap, analysts warn that financially constrained homebuyers, coupled with regulatory and ownership uncertainties, could make the ambitious target increasingly difficult to achieve.
The target is supposed to be fulfilled through multiple programs, including subsidized housing, home renovations and easier access to housing credit. However, with less than four months left in 2026, Public Housing and Settlements Minister Maruarar “Ara” Sirait said several regions still need to improve the implementation of their programs.
The Independent Housing Stimulus Assistance (BSPS) program, which helps homeowners renovate their houses, had reached only 32.5 percent of its 400,000-unit target for 2026 as of Sept. 17. The government plans to increase the target fivefold to 2 million units in 2027.
Meanwhile, the Housing Financing Liquidity Facility (FLPP) had provided Rp 18.75 trillion (US$1.05 billion) in financing for 150,750 homes as of Sept. 16, reaching only 43.1 percent of this year’s 350,000-unit target.
The government has pledged to improve implementation by easing BSPS eligibility requirements, including reducing the required occupancy period for uninhabitable homes, shortening the waiting period between aid disbursements and simplifying proof of land ownership.
On financing, the Housing Credit Program (KPP) ceiling has been raised from Rp 36 trillion to Rp 50 trillion, along with incentives for low-income households, including waivers of land and building acquisition duties and building permit fees in regions that have adopted the policies.
Inviting foreign helps
