SMV Ministry of Finance Synergizes with Surakarta City Government to Improve Slums

SURAKARTA - The Ministry of Finance through a number of Special Mission Vehicles (SMV) collaborated with the Surakarta City Government to improve the quality of people's housing through social and environmental responsibility (TJSL) programs, especially in slums.

The SMV under the Ministry of Finance that is involved in this program includes PT Sarana Multigriya Finansial (SMF), PT Penjaminan Infrastruktur Indonesia (PII), PT Indonesia Infrastructure Finance (IIF), PT Sarana Multi Infrastruktur (SMI), the Indonesian Export Financing Agency (LPEI), and PT Geo Dipa Energi (GDE).

SMF President Director Ananta Wiyogo said the Sangkrah area in Solo City, which was previously categorized as a slum area, has now shown significant changes thanks to the program for arranging and improving the quality of housing.

Ananta explained that SMF is a special mission vehicle under the Ministry of Finance that has a special mandate in the field of secondary housing financing.

He added that in line with the mandate, the SMF CSR program is focused on supporting the housing sector, including supporting the government's program to build 3 million houses.

"Since 2018, SMF has carried out CSR programs, the development of slums and has channeled approximately 747 houses in 33 cities, the idea of CSR carried out by SMF at the direction of the Minister of Finance in 2018," he explained in the role of the Ministry of Finance in improving the quality of settlements and community financing in Surakarta, Thursday, February 12.

He added that in Solo City, the slum development program has been carried out in two stages.

Ananta explained that the first phase in 2022 includes the construction and renovation of 47 houses.

The next phase was carried out in 2025, with the construction and renovation of 56 units of habitable houses in the Sangkrah area with a total program value of Rp. 4.8 billion. In addition, SMF contributed to the construction of 37 units of houses in the second phase.

"So the total houses that have been built by SMF in the CSR program in the development of slums are 84 houses," he explained.

He explained that based on the DTS Indonesia study, the housing sector has a multiplier effect of 1.86 times on the economy, which means that every investment of Rp1 trillion in this sector has the potential to increase gross domestic product (GDP) to Rp1.9 trillion.

Ananta added that this program specifically targets low-income people in the first and second desil groups, who generally have irregular income and do not have the ability to repay housing financing.

"So the TGSL program to improve the quality of houses in slums is one of the solutions that can be implemented to reduce the backlog of housing eligibility," he said.

In addition, this program also contributes to the achievement of Sustainable Development Goals (SDGs), including poverty eradication (SDG 1), healthy and prosperous life (SDG 3), access to clean water and decent sanitation (SDG 6), and sustainable cities and settlements (SDG 11).

Ananta emphasized that the handling of residential areas cannot be done in a partial manner, so this program is designed as part of the integrated arrangement of the area, which is then continued by the Surakarta City Government through the improvement of environmental infrastructure, sanitation, drainage, and other basic access.

"In the future, SMF will continue to strengthen its role not only as a provider of liquidity for housing financing but also as a strategic partner of the government and regions in ensuring that housing development has a direct impact on the community," he explained.

Meanwhile, Deputy Mayor of Surakarta Astrid Widayani hopes that development in Sangkrah Village will not only stop at physical improvements to housing, but also encourage the independence of residents.

He explained that the Surakarta City Government is working with the Government Investment Center (PIP) to provide capital access stimulus for micro and ultra micro business actors.

According to him, the assistance and access to financing are expected to increase the local community's economic capacity.

"Not only from the government side, but how to increase independence from the community through assistance and access to capital to PIP," he said.

Astrid added that the program would be synergized with the UMKM Center which has been running in Surakarta City.

He said that the cooperative and UMKM programs of the Surakarta City Government together with PIP support would be prioritized for the Sangkrah area to strengthen the economic independence of residents.