Minister Maman Confident 3 Million Homes Program Will Be Growth Engine for MSMEs

Minister of Micro, Small, and Medium Enterprises (MSMEs) Maman Abdurrahman (Antara)

JAKARTA - The Minister of Micro, Small, and Medium Enterprises (MSMEs), Maman Abdurrahman, expressed his full support for the 3 million housing development program as a national priority due to its potential to become a growth engine for MSMEs.

"This isn't just about building houses, but about building an ecosystem. Developers are involved, building material suppliers are also involved, and micro-businesses such as food stalls, food vendors, and healthcare and education services will flourish around housing," Maman said on Thursday, August 28.

According to him, this program not only makes it easier for people to own homes but also encourages the growth of the MSME ecosystem in various sectors.

Based on the 2024 Single Data Information System, there are approximately 104,000 MSMEs operating in the housing development ecosystem, of which 35,000 are engaged in construction services, and nearly 70,000 are building material providers ready to be empowered to support the housing program.

Maman explained that to ensure the success of the 3 million housing program, the government has allocated IDR 130 trillion in People's Business Credit (KUR).

"The government is providing interest subsidies so that housing sector entrepreneurs can access financing with a KUR interest rate of approximately 5 percent," he said.

Maman emphasized that the Ministry of MSMEs will ensure that as many MSME entrepreneurs as possible are involved in the program's value chain.

This includes medium-scale developers and material suppliers, many of whom are small and medium-sized enterprises (SMEs), as well as micro-entrepreneurs who are developing new housing complexes.

"If this program is implemented quickly, the benefits will not only benefit those who don't yet own homes, but also MSMEs, the backbone of the economy," Maman said.