“I hope it will be approved. Of course, I do not have the authority to decide, but I have submitted an open proposal in a cabinet meeting,” he said in Jakarta on Friday.
Sirait said the initiative builds on the government’s subsidized public housing credit scheme, provided through the Housing Financing Liquidity Facility (FLPP), which supports the target of building and renovating 3 million homes.
The program offers loans with a 5 percent interest rate — far below the 12 percent for commercial housing — and requires only a 1 percent down payment.
The ministry, tasked with meeting the 3 million-home annual target, also runs the Self-Help Housing Stimulus Assistance (BSPS) program for home renovations. This year’s subsidized housing quota is 350,000 units, up from around 200,000 in previous years.
A large-scale rollout of the subsidized housing program is planned for September 2025, with a target of at least 25,000 units.
Quotas have been allocated for various groups, including 20,000 units each for farmers, fishermen, laborers, and teachers; 8,000 units for drivers; and 3,000 units for media workers.
Under the FLPP scheme, the government channels low-cost funds to partner banks, enabling buyers to access affordable interest rates, low down payments, and long repayment terms.
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Translator: Aji Cakti, Martha Herlinawati Simanjuntak
Editor: Anton Santoso
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