Reasons For Raising Subsidized House Prices: Impact Of Inflation

Illustration of subsidized houses (Photo: Doc. Antara)

YOGYAKARTA The Ministry of Public Works and Public Housing (PUPR) decided to increase the price of subsidized houses for landed houses in 2023-2024 through the Ministerial Decree (Kepmen) of PUPR Number 689/KPTS/M/2023. With the issuance of the regulation, the developers are valid to increase the price of their houses. So, what is the reason for the government to increase the price of subsidized houses?

Spokesperson for the Ministry of Public Works and Public Housing (PUPR), Endra S Atmawidjaja revealed several considerations by the government to increase the selling price of subsidized houses, one of which was due to the COVID-19 pandemic.

Endra said the PUPR Ministry adjusted the price of subsidized houses to compensate for this. This includes rising prices for materials and inflation.

In addition, the increase in subsidized housing prices is also to provide certainty for developers.

"I think that's all, to provide certainty for developers who will also provide subsidies to the community, if the subsidies are from the government which will be distributed through banks and also to developers," he told reporters at the PUPR Ministry office, quoted Wednesday, July 5, 2023.

Endra then advised developers to build subsidized houses with good quality.

"Because there is public money, there is public money, we have to make sure that it (the house) has good quality," said Endra

Limit On The Selling Price Of Subsidized Houses In 2023-2024

As mentioned above, the Ministry of PUPR has just raised the price of subsidized houses through the Ministry of PUPR Number 689/KPTS/M/2023.

In the Ministerial Decree, each subsidized house gets facilities in the form of VAT exemption of 11 percent of the selling price of landed houses or between Rp. 16 million-Rp. 24 million for each housing unit.

Kepemen PUPR Number 689/KPTS/M/2023 also regulates the maximum selling price limit for landed houses granted VAT exemption to be between Rp162 million-Rp234 million in 2023 and between Rp166 million-Rp240 million in 2024 for each zone.

Quoting VOI, here is a list of the prices for the newest subsidized houses in 2023-2024 throughout Indonesia:

This is information about the reason the government has increased the price of subsidized houses in 2023-2024. Get news updates of other options only on VOI.ID.