Simpler financing can support three mln homes a year target: Govt

Depok, W. Java (ANTARA) - Regulations related to housing financing can be simplified to support the target of building three million houses a year during President Prabowo Subianto's term, according to State-Owned Enterprises Minister Erick Thohir.

"I am sure that if the regulations are simplified, it will greatly support the dream of the President and Mr. Ara (Housing and Settlements Minister Maruarar Sirait), who is tasked with making breakthroughs in many housing projects for the people," Thohir said.

He made the remarks while visiting a public housing location in Margonda, Depok, West Java, on Wednesday.

According to him, Bank Tabungan Negara (BTN), which handles homeownership loans (KPR), needs to be given funding for housing construction.

With sufficient financial support, he said, BTN will find it easier to build homes for the people.

"If BTN is given sufficient funding opportunities, I think BTN will have no difficulty building 800 thousand houses," Thohir added.

The Ministry of SOEs and the Ministry of Housing and Settlement Areas (PKP) are working together to build quality public housing by providing public housing credit (KPR) with a 30-year tenor.

"One of the things we agreed on at that time was how mortgages could be 30 years. Secondly, how about an example in today's place, public housing in the apartment version, which costs Rp270 (million)," Thohir said.

Thohir and Sirait have reviewed examples of housing based on the transit-oriented development (TOD) concept in Margonda at Pondok Cina Train Station, Depok, and at Tanjung Barat Train Station, Jakarta.

The two housing projects by the national housing development firm Perumnas are examples of vertical housing that have been built successfully by utilizing state rail company PT Kereta Api Indonesia (KAI) assets.

Earlier, Deputy Minister of SOEs, Kartika Wirjoatmodjo, revealed the government's plan to build housing with the TOD concept on land owned by PT KAI in Manggarai Jakarta, Gubeng Surabaya, and Kiara Condong Bandung.

Housing in the Manggarai area, he said, will be larger compared to the other two locations with an area of 60 hectares, while housing in Gubeng will be built on 12 hectares of land.

However, construction in the Manggarai Station area will take longer because it will require consolidation with the local community members who already live there.