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View all search resultsDuring a meeting with the House of Representatives on Feb. 10, Public Housing and Settlements Minister Maruarar Sirait revealed that the Meikarta land has been granted for free by Lippo Group to the government.
Once synonymous with controversy and stagnation, Meikarta has resurfaced on Indonesia’s national housing agenda. The government plans to repurpose the site for subsidized vertical housing for low-income households, with around 30 hectares (ha) of Lippo Group-owned land reportedly provided “for free”. The arrangement raises broader questions about transparency and whose interests the policy ultimately serves.
Fahri pointed to several hurdles, including land issues and lack of demand, hampering rollout of the funding commitments made by foreign entities that the government had secured over the past months, as quoted from Bisnis.com.
According to Maruarar, the plan to transform correctional facilities into public housing was proposed by President Prabowo, who highlighted that many prisons in the country are located in "strategic" urban locations. By repurposing these sites to public housing, President Prabowo aims to "optimize state assets" while addressing the growing housing backlog in densely populated areas.
In late October, Public Housing and Settlements Minister Maruarar Sirait estimated the ministry would need over Rp 23 trillion (US$1.44 billion) to meet the needs of the housing program annually, but for next year the Finance Ministry has only earmarked Rp 5 trillion.
Funding for new infrastructure is currently frozen at the directive of Finance Minister Sri Mulyani Indrawati, pending coordination among ministries under the leadership of the National Development Planning Agency (Bappenas).
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