The Ministry of Finance (Kemenkeu) stated that the housing sector is one of the sectors that is expected to encourage Indonesia's economic growth.

On that basis, the government decided to provide various fiscal incentives, including Value Added Tax exemption facilities (VAT), Advance Assistance Subsidies (SBUM), and Housing Financing Liquidity Facilities (FLPP).

Expert Staff for Financial Services and Capital Markets of the Ministry of Finance Arief Wibisono said the government optimizes the function of PT Sarana Multigriya Finansial (SMF) with BP Tapera in distributing these various incentives.

"This FLPP program is also a breakthrough in government policies in the housing sector in order to increase the accessibility of low-income people (MBR) to housing financing loans," he said in a written statement, quoted Friday, September 15.

According to Arief, since 2010 the government has allocated a budget for the FLPP program totaling IDR 108.5 trillion which is channeled in the form of revolving funds or through State Equity Participation. Overall, the performance of the distribution of FLPP funds from 2010 to the first semester of 2023 is IDR 111.46 trillion to finance 1,269,112 housing units.

"The distribution of FLPP has also succeeded in containing the growth in the backlog mismatch rate of housing ownership at 12.72 million housing units," he said.

On the same occasion, SMF President Director Ananta Wiyogo said the FLPP program is one of the programs in the housing sector that allows MBR to own a house. The interest rate given to MBR is a maximum of 5 percent fixed up to 20 years.

"The FLPP program is a tangible manifestation of the government's presence for the housing sector which allows the ownership of decent and affordable houses for all Indonesian people as mandated in the Basic Law," said Ananta.


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