Jakarta (ANTARA) - Minister of Housing and Settlement Areas Maruarar Sirait has proposed the construction of 500 thousand subsidized housing units for 2026 during a cabinet meeting.
"We will make a significant leap if all (members of the) House of Representatives and government stakeholders agree to this proposal. Yesterday, I proposed 500 thousand subsidized housing units for 2026," he stated in Jakarta on Tuesday.
The ministry has proposed renovating two million subsidized housing units and building 500 thousand subsidized housing units in the 2026 draft State Budget. Meanwhile, there are more than 26 million uninhabitable housing units.
Earlier, Finance Minister Sri Mulyani Indrawati reported that state spending for the subsidized housing program through the Housing Financing Liquidity Facility (FLPP) scheme had reached Rp18.8 trillion in the first semester of 2025.
The budget was utilized to support the construction of 115,930 housing units for low-income communities (MBR). Thus, the initial budget allocation for housing financing in the 2025 State Budget reached a total of Rp29.1 trillion.
However, based on President Prabowo Subianto's directive to expand the scope of the program, the target for subsidized housing financing through the 2025 FLPP scheme has increased to 350 thousand housing units.
This target adjustment has raised the budget requirement to Rp47.4 trillion, comprising Rp35.2 trillion for FLPP, Rp6.7 trillion for the state-run secondary mortgage firm PT Sarana Multigriya Finansial (Persero), or SMF, and Rp5.5 trillion for down payment subsidies.
500 thousand subsidized housing units proposed for 2026
Rabu, 2 Juli 2025 11:43 WIB
Minister of Housing and Settlement Areas Maruarar Sirait (right) and Governor of North Sumatra M. Bobby Afif Nasution give statements during a press conference in Jakarta on July 1, 2025. (ANTARA/Aji Cakti)
