JAKARTA - Economist Achmad Nur Hidayat said the 3 million house construction program initiated by President Prabowo Subianto had a positive goal in reducing housing backlogs that had reached 12.7 million units to encourage growth in the property sector and job creation.
"Behind that big ambition, reality on the ground shows that this program is facing a steep road, not only from a technical and financing perspective, but also from the failure to read the current social-economic context of society," he said in his statement, Wednesday, May 7.
Achmad conveyed that in a statement by the Deputy Minister of Housing and Settlement Areas (PKP) Fahri Hamzah, Indonesia managed to get a soft loan commitment of IDR 50 trillion from multilateral institutions such as World Bank, ADB, and AIIB, indeed providing fresh air for state fiscals. However, the financing solution alone is not enough to answer the complexity of challenges on the ground.
According to him, the success of the people's housing program depends on the economic ability of the community to own and pay in installments of houses, including subsidized houses.
In addition, in recent months, Indonesia has been hit by a wave of layoffs (PHK), especially in the manufacturing and textile sectors.
"Thousands of workers have lost their jobs or experienced cuts in working hours and income," he said.
Meanwhile, at the same time, the increase in food and energy prices continues to suppress the purchasing power of lower middle class households.
Under these conditions, buying a house is not a top priority, because basic needs such as food and transportation are more urgent.
"Even the subsidized Home Ownership Credit (KPR) scheme remains unaffordable if the income is still insufficient to pay the down payment and monthly installments. So, it is a big mistake if the government only focuses on the physical development aspect of the house without seeing the socio-economic readiness of the beneficiary people," he said.
Achmad said that the main criticism of the 3 million home program was that the government was too focused on achieving quantitative targets, instead of ensuring the recovery of the employment sector and increasing national productivity first, where housing development should run in line with real economic growth at the household level.
"This means that houses cannot be separated from work. Wherever in the world, successful housing development models are always attached to productive zones: industrial areas, trade centers, or local economic centers. The focus of the PKP policy should shift from just quantitative development towards development of work-based settlements and connectivity," he said.
According to him, this requires cross-sectoral synergy between the Ministry of Manpower, Industry, Transportation, and Regional Planning.
In addition, the construction of vertical houses will only be effective if it is supported by an integrated and affordable public transportation system by workers.
Achmad said that in order for the housing program to not only become a political project, concrete and sustainable strategic steps are needed, namely first, the government needs to publish a detailed and credible roadmap, and this document must include the division of roles between institutions, financing schemes, determination of priority areas, and the mechanism of involvement of private parties.
Second, simplification of development permits is absolutely necessary. Bureaucratic reform, including digitizing the licensing process, can reduce business costs and increase investment attractiveness.
Next, the third is to develop a blended finance scheme. The combination of APBN, regional bonds, private funding, and crowdfunding will create a more inclusive and efficient investment ecosystem.
Next, the fourth is to consider the re-establishment of the Ministry of Public Housing. This institution is needed to unite policies, accelerate decision making, and maintain the direction of program implementation.
Then the fifth is to build a digital surveillance system that is transparent and accountable in the use of funds, both from public budgets and donors, must be closely maintained. The public has the right to know how and for whom each rupiah is used.
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Achmad said that the construction of houses was not just piling up concrete and cement, but a complex social policy because it touched on labor issues, transportation, quality of life, and spatial planning.
"It's not enough just to make big numbers and promise fresh funds. The government must first ensure that the people have jobs, the housing market is not held hostage by land prices, and the bureaucracy is not the main obstacle to development," he explained.
According to him, the 3 million house program will only be meaningful if it is able to improve the quality of life of the community, not become a monument to political ambitions.
People's houses must be built on rational, inclusive, and future-oriented policies.
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