Illustration. (Kompas/P Raditya Mahendra Yasa)

The Public Works and Public Housing Ministry plans to build special affordable housing for the 40 percent of Indonesians who do not have enough money to buy a house.

Director general of housing finance Maurin Sitorus says that besides the 40 percent who cannot afford a home, there is another 40 percent of the population who have limited financial means and struggle to afford down payments and mortgages.

'€œThere are 25,000 people who are homeless in this country. We will help with special affordable housing or a self-help housing stimulant,'€ Maurin said as quoted by tempo.co on Monday.

Maurin said that the government would assist with an advance of Rp 4 million (US$350) and a 1 percent down payment, adding that the ministry was aiming to construct 900,000 housing units through the housing loan liquidity facility (FLPP).

FLPP is a government-backed mortgage program, through which the government subsidizes 7 percent of the total 12 percent commercial interest rates, allowing low-income people to pay only 5 percent interest on loans for up to 20 years. The government allocated Rp 5.1 trillion of the 2015 state budget to the FLPP.

Maurin said the government was also aiming to construct 550,000 apartment towers and 450,000 self-help homes. (liz/dan)(+)

Popular

Prabowo fires free meal agency chief after suggesting Saudi rollout

Indonesia plans for where people sleep, not where they live their day

Central Jakarta fire destroys more than 300 homes