SOE Minister Encourages BTN To Trigger TOD For 3 Million Houses

Photo: Special

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir focuses on supporting the 3 Million House Program through the provision of Transit Oriented Development (TOD) or housing type, which is confirmed by public transportation. PT Bank Tabungan Negara (Persero) Tbk is also a vehicle for funding the construction and distribution of TOD Home Ownership Loans (KPR).

Erick stated that the TOD construction would also be expanded to the airport area.

"We see that housing must be close to public transportation, besides that it is also in accordance with the land we have, namely flat and suitable for a high concept," explained Erick in Jakarta, Tuesday, January 21.

Erick continued that TOD housing carried out by SOEs has around 800-1,200 residential units. To own housing in the TOD, the government through BTN provided two schemes, namely 60 percent using Non-Subsidized Mortgages and 40 percent with Subsidized Mortgages.

With a focus on providing TOD, Erick said the concept would ensure the availability of infrastructure such as roads and electricity.

"We also don't want to be trapped in landed houses because 70 percent of Indonesia's territory is the sea. Then within 30 percent of the land area is an agricultural, industrial area, so mapping this land map must be really accurate," said Erick.

Previously, the President Director of BTN Nixon LP Napitupulu, the TOD concept was an option that would attract urban people with a responsibility income, which was around Rp. 12 million to Rp. 15 million per month, which had been difficult to buy houses in the city center because the price was too high.

The solution of land constraints for the provision of affordable housing in urban areas is to utilize government, state and state-owned land to build apartments with the TOD concept. This is the most obvious form of SOE synergy in the Three Million Houses Program," said Nixon recently.

The TOD concept has become a trend that is in demand in various big cities in the world because of its efficient nature in terms of land use and reducing traffic congestion through the use of public transportation. In the TOD concept proposed by BTN, the construction of vertical housing or apartments can be carried out by PT Perumnas (Persero) on land for train stations owned by PT Kereta Api Indonesia (Persero) (KAI) or local government lands such as PD Pasar Jaya.

According to Nixon, the selling price of TOD apartments will be affordable by urban communities through mortgages with a tenor of 25-30 years.

In Jakarta, for example, there are more than 140 locations for PD Pasar Jaya. If we want to build it, it means 140 towers. Then there is also a train land in Manggarai and so on. So, there are actually many that can be optimized for housing urban groups," added Nixon.