Minister Basuki: House Construction With The FLPP Scheme Reaches 1.1 Million Units

JAKARTA - The Ministry of Public Works and Public Housing (PUPR) noted that until 2021 the construction of 1 million houses under the Housing Financing Liquidity Facility (FLPP) scheme has reached 1.1 million units. This financing program will also be continued throughout 2021.

PUPR Minister Basuki Hadimuljono said the budget for house construction under the FLPP scheme this year reached Rp. 16.2 trillion. The budget is much larger than last year's Rp9.11 trillion.

"We at the PUPR Ministry, especially for housing development through the FLPP scheme with a program of 1 million houses until 2021, 1.1 million units have been built," he said, in Jakarta, Wednesday, March 31.

Basuki said that the 1 million house program would be absorbed by state-owned banking companies, namely PT Bank Tabungan Negara (Persero) with a percentage of 90 percent. Currently, the management has absorbed around 21,000 housing units with a value of IDR 2.5 trillion.

"What has been absorbed is around Rp. 2.5 trillion as many as 21,000 housing units with a target of 157,500 housing units, this does not include the flats that we build through the state budget," he said.

Furthermore, Basuki said that the intensity of the house construction would be synergized with the program to use induction or electric stoves. That way, he said this could encourage the absorption of 50 percent of the national electricity reserves.

"So I think, if we can work together to use the induction stove earlier. So with this massive house construction, if committed and it should be, we must commit to be able to utilize induction stoves in order to absorb 50 percent of PLN's energy supply," he said.

As is known, the PUPR Ministry has collaborated by signing a memorandum of understanding with PLN and 9 BUMN works. This activity aims to achieve national energy independence and resilience, in particular increasing the use of induction stoves in the household sector to reduce LPG imports.