Driven by Industrial Area Expansion, Himperra Jateng Targets 15,000 Subsidized Houses by the End of the Year

Chairman of the Regional Board of Directors (DPD) of the Association of Residents and Housing Developers (Himperra) of Central Java Sugiyatno. (Theresia Agatha/VOI)

BATANG - The growth of industrial areas in Central Java (Jateng) has boosted the surge in demand for subsidized houses. This trend makes developers optimistic that they will be able to realize around 15,000 subsidized houses through the Housing Financing Liquidity Facility (FLPP) scheme by the end of 2026.

Chairman of the Regional Board of Directors (DPD) of the Association of Residents and Housing Developers (Himperra) of Central Java Sugiyatno said that the increasing industrial activity has changed the map of subsidized housing development.

If previously the development was concentrated in the Semarang Raya area, it is now beginning to shift to the Pekalongan Raya area which is developing as a new industrial center.

"Central Java is now one of the industrial centers. Automatically the need for houses also continues to increase. Therefore, housing development does follow the development of industrial areas," said Sugiyatno on the sidelines of the Mass KPR Sejahtera Ceremony through the FLPP scheme held in Batang Regency, Central Java, Thursday, July 30.

Sugiyatno added that the majority of subsidized home buyers are the productive age group of 22-35 years. Around 85 percent of them work as factory employees who need affordable housing near the area where they work.

This optimism is also supported by the high stock of houses owned by Himperra Central Java members. Currently, the organization has 581 developer members with the availability of around 18,000 subsidized houses.

Until June 2026, the realization of the distribution of FLPP by members of Himperra Central Java has reached around 3,000 units and is the largest at the national level.

Meanwhile, in 2025, Himperra Central Java also recorded a realization of around 9,000 units, making it the region with the second largest FLPP achievement in Indonesia after West Java or around 40 percent of the total FLPP realization in the province.

Although the prospects are considered positive, Sugiyatno reminded that there are still a number of challenges that can hinder the development of subsidized houses.

One of them is the increasingly limited availability of land due to the Protected Rice Land (LSD) policy and stricter spatial planning rules.

He hopes that the local government will immediately determine the area that can be allocated as a settlement, especially on unproductive land and not technical irrigated rice fields.

"The central government has provided many facilities, such as the exemption of BPHTB and PBG. However, if the local government does not immediately adjust the spatial policy, the target of the 3 Million House Program will be difficult to achieve," he said.

Apart from land issues, Sugiyatno continued, developers also face a 15-20 percent increase in the price of building materials, no adjustment in the price of subsidized houses for the past four years, and the relaxation of the Financial Information Service System (SLIK) has not been implemented.

On the other hand, he assessed that the People's Business Loan (KUR) Housing program has begun to have a positive impact on subsidized housing developers. Around 50 members of Himperra Central Java have used the financing facility as working capital for house construction.

"KUR is very helpful because until now working capital has been obtained through bridging facilities from BPR. With lower interest rates, the quality of house construction can also be improved," he said.

Furthermore, Sugiyatno hopes that the distribution of the Housing KUR in Central Java which has been allocated around Rp. 880 billion can continue to increase, so that it can support the acceleration of the construction of subsidized houses as the industrial areas continue to grow in various areas.