Ministry Of PUPR Calls Housing Backlog Reach 12.7 Million Families

Housing (Photo: dock. Antara)

JAKARTA - The Ministry of Public Works and Public Housing (PUPR) said that currently the housing backlog in Indonesia has reached 12.7 million families who do not yet have a home.

"Currently, the housing backlog reaches 12.7 million families who do not have a home and an increase of 680,000 new households every year," said Director General of Public Works and Housing Infrastructure Financing Herry Trisaputra Zuna in the 2024 Property Outlook agenda: Prospects of Housing Financing in Political Years online, on Tuesday, February 27.

Herry said, there are a number of things that still cause the high number of housing backlogs in the country.

"We must be aware of domestic challenges, including rising interest rates in the country, national food security, weakening the rupiah exchange rate and domestic political conditions ahead of the 2024 election," he said.

Therefore, the government through the Ministry of PUPR continues to strive to overcome this in accordance with the mandate of the law.

"The implementation of housing financing facilities and assistance programs, such as housing financing liquidity facilities or FLPP in the form of LFPP housing loans and people's housing savings or Tapera in the form of home ownership loans (KPR), home construction loans or KBR and home renovation loans or KRR for low-income people (MBR) and Tapera participants," he said.

Even so, Herry did not deny that the housing backlog provides great potential for the property sector. According to him, this is an opportunity for housing developers to provide decent housing and housing.

"The potential for the property business in the future is still relatively large," he said.

Moreover, the property business potential is also driven by the subsidized mortgage interest rate which is still 5 percent. This gives a breath of fresh air for property entrepreneurs to build their business in Indonesia.

"Based on the trend of the benchmark interest rate of Bank Indonesia (BI) from October 2023 to February 2024, BI Rate remained at the level of 6 percent. However, the basic lending rate as of December 2023 was at 8.99 percent. The Ministry of PUPR ensures that the interest on housing loans or subsidized mortgages remains at 5 percent," he said.

Furthermore, the property business is also supported by future presidential and vice presidential candidates in Indonesia. According to Herry, based on the vision and mission document for presidential and vice-presidential candidates in the 2024 election, the candidate for national leadership has a high commitment regarding the provision of decent housing and housing.

"Based on the vision and mission documents of the presidential and vice-presidential candidates for the period 2024-2029, at least 3 million houses are expected to be built by the upcoming new government, namely one million houses each in rural, urban areas to coastal areas," he added.