BTN Boss Proposes BUMN Assets To Local Governments To Be Optimized For Housing Development In Urban Areas

House (intermediate photo)

JAKARTA - President-elect Prabowo Subianto plans to build three million houses per year during his reign. Where development is divided into villages to urban areas. In fact, Prabowo has also formed a Housing Task Force.

President Director of BTN, Nixon LP Napitupulu admitted that he had met with the Housing Task Force to discuss the target. He said the plan to build 3 million houses was the largest quota in the village, which was 2 million units per year.

Then, continued Nixon, the rest will be built for subsidized housing programs for Low Income Communities (MBR) around urban areas, and in urban areas.

"Yes, FLPP. From Bekasi, Cikarang, Karawang to Purwakarta or if you go there to Serang, Cilegon, and so on," Nixon told reporters written Wednesday, October 16.

Nixon said that for houses in urban areas, it is targeted for people with income ranging from Rp. 12 million to Rp. 15 million per month.

"So these people work in urban areas, like friends who don't have a house near urban areas, it's impossible in the city. Because the price is not affordable," he explained.

Especially for urban areas, continued Nixon, his party proposed to the Prabowo Housing Task Force chaired by Hashim Djojohadikusumo, that government-owned land or assets be optimized to build housing.

"We have a suggestion that the use of government land, state lands, state-owned land to be optimized is established on top of it apartment buildings for friends of urban people," he said.

"For example, TOD (transit oriented development) which is on the train but we make the price still affordable," continued Nixon.

Nixon also admitted that he had proposed the construction of housing on land owned by the local government (Pemda) in the form of PD Pasar Jaya. According to him, this proposal will be profitable because the PD Pasar Jaya demand does not only come from outside but also from residents who live on it.

"Secondly, we also propose local government lands in the form of PD Pasar Jaya. Below it can be built 2-3 floors for the market. But more permanent and neat on the apartment, which says the price is Rp. 400 to Rp. 500 million. Affordable if you use KPR for 25 years or 30 years, "said Nixon.

"So one market has a demand side on it, right, apart from the surrounding community. Second, people also have housing on the ground, it becomes an apartment. So it can be arranged in Jakarta, for example there are more than 140 PD Pasar Jaya if we want to build it, it means there are 140 towers," he continued.

Nixon admitted that he had also proposed to the Prabowo Housing Task Force to abolish the housing Value Added Tax (VAT), and to exempt the Rights to Land and Buildings.

According to Nixon, with the elimination of VAT, the purchase price of the house will be more affordable. So that the target of 3 million houses per year for the Prabowo government can be achieved.

"What causes people to not be able to buy a house today is not a DP. Because the DP is 0 and 1 percent, it's been a long time. But in fact it's still difficult. Why? So there was a VAT fee, there was a BPHTB that couldn't use credit, it had to be cash. There's more to be called insurance costs and that's if it's a total of 20 to 21 percent," said Nixon.