Program 3 Million Houses Get Cross-Ministerial Support

JAKARTA - The 3 million house program that is a priority for the Prabowo-Gibran government has received support from across ministries. This was revealed in the interactive dialogue of the second session of the 3 Million House Program, Gotong Royong Building a House for the People organized by PT Bank Tabungan Negara (Persero) Tbk (BTN) together with the Ministry of Housing and Settlement Areas (PKP) in Jakarta, Friday, November 29.

The event was attended by Minister of PKP Maruarar Sirait, Deputy Minister of PKP Fahri Hamzah, Minister of Investment and Downstreaming/Head of BKPM Rosan P Roeslani, Deputy Minister of Finance Suahasil Nazara, Deputy Minister of SOEs Kartika Wirjoatmodjo, Deputy Minister of Environment Diaz Hendropriyono and Chief Executive of Banking Supervisory to Arrest Member of the Board of Commissioners of the Financial Services Authority (OJK) Dian Ediana Rae.

Deputy Minister of Housing and Settlement Areas (PKP) Fahri Hamzah said the 3 Million House Program was based on President Prabowo Subianto's concern which has serious attention to combing the lowest people in Indonesia, namely those who are not registered and do not own a house due to very weak economic conditions, so they are forced to live in slum settlements in urban areas, land, or live in uninhabitable houses.

The mission is not only to build houses, but to eradicate poverty. Indonesia will reach 100 years of independence, but there are still many houses that do not have bath-wash facilities (MCK), so people defecate in rivers. We as officials come and go, the time we have is short, so we don't want to play around when we get a mandate from the people," said Fahri.

As an effort to realize the 3 Million Houses Program, the Ministry of PKP has a plan to increase the quota of Housing Financing Liquidity Facilities (FLPP) to 800,000 housing units by 2025 from the current 220,000 units. The plan also received a signal of support from the Ministry of Finance as the regulation of the state budget.

In the dialogue forum, PKP Minister Maruarar Sirait said the plan to increase the FLPP quota was carried out to solve the problem of limited quotas that are still being experienced today, even though consumer demand is high. Based on information submitted by BTN President Director Nixon LP Napitupulu, currently there are around 46,000 applications that have received KPR approval from BTN but are still queuing for FLPP quotas from the state.

The program that has been liked by all housing stakeholders is FLPP, but the problem is that the quota is limited. In fact, the bad credit is very small. Actually, the best program is to do something that everyone is happy so we work happily. FLPP is a successful program, and if there is a program from the previous era that is good, it's okay for us to continue, "said Maruarar.

Based on the plan of the Ministry of PKP, the FLPP financing portion distribution scheme will be changed to 50 percent of the state and 50 percent of banks so as not to burden the financial hearing, with the addition of a credit period or tenor to 30 years so that installments become more affordable for the public. Currently, the distribution of proportions of FLPP support is still 75 percent from the State Revenue and Expenditure Budget (APBN) and 25 percent from banks, and tenors for 20 years.

On this occasion, BTN conveyed its readiness to support the PKP Ministry's plan to increase the FLPP quota.

"We welcome there is an effort to increase the subsidized mortgage quota from usually around 200,000 to 800,000. We are discussing it technically for its implementation. We hope this can be the president's decision," said BTN President Director Nixon LP Napitupulu.

In terms of funding, Nixon revealed, the increase in FLPP quota to 800,000 units would require more than Rp70 trillion, much greater than FLPP's current funding of almost Rp30 trillion. If the proportional distribution scheme is changed to good luck percent between the state budget and banking, then BTN requires alternative funding sources outside of regular third party funds (DPK). One of them is the issuance of bonds and foreign loans whose value can reach around Rp10 trillion to Rp12 trillion.

"In addition to preparing the DPK, we want to issue bonds (bonds), but our proposal is that the government can guarantee the bonds, so that they will be cheaper for us and the size we get can be bigger. We will also look for foreign loan channels and we are currently meeting a lot with investors," said Nixon.

Confirmed on the same occasion, Deputy Minister of BUMN Kartika Wirjoatmodjo said that his party would discuss with the Ministry of Finance and Bank Indonesia to provide regulatory support related to long-term liquidity for BTN as an FLPP implementing bank. In this case, the Ministry of SOEs hopes that BTN bonds can be guaranteed by the government. We are looking for ways to whether BTN can issue bonds for up to 15 years so that BTN can have funding of up to Rp150 trillion per year. It's not easy, but we will look for the scheme. Ideally, our proposal is that the bonds issued by BTN can be guaranteed by the government," said Kartika.

Deputy Minister of Finance Suahasil Nazara said the Ministry of Finance accepted the plan to increase the FLPP quota and would be discussed in the discussion of the 2025 RAPBN. In addition, the Ministry of Finance also supports an alternative funding source to be able to support financing if the financing scheme is changed.

"To be able to redesign FLPP, we need to adjust the existing rules and add quotas will go to the discussion next year because there are calculations of how much shopping, receipts, and others," explained Suahasil.

The Financial Services Authority (OJK) as the banking regulator and the financial industry also supports efforts to realize the 3 Million House Program. The Chief Executive of Banking Supervisory Summary of Member of the Board of Commissioners of the Financial Services Authority (OJK) Dian Ediana Rae ensured that the implementation of Government Regulation (PP) Number 47 of 2024 concerning removing bad credit collections at state-owned banks would help solve the problems that developers have complained about the difficulty of prospective debtors applying for KPR Subsidies because they have bad debts in online loans (pinjol).

"If the collection is deleted, automatically (credit stuck) of farmers and fishermen registered in the Financial Information Service System (SLIK) of the OJK will be completely deleted. This will help them to apply for credit including housing loans," said Dian.