JAKARTA - Minister of Housing and Settlement Areas (PKP) Maruarar Sirait (Ara) proposed a quota of 500,000 subsidized houses in 2026.
"I have conveyed it in a cabinet meeting, hopefully it will be approved, if my proposal is next year it will be 500,000. Of course it is not me who has the authority, but I have submitted an open proposal in a cabinet meeting," Ara quoted Antara as saying.
According to him, the proposal is in order to overcome the housing backlog of 9.9 million units.
Ara revealed that the KPR subsidy of the Housing Financing Liquidity Facility (FLPP) is a mainstay program in the construction and renovation of three million houses as targeted by President Prabowo Subianto.
The Ministry of PKP is tasked with building and renovating 3 million houses a year. The most important mainstay program of the Ministry of PKP is subsidized housing, then Self-Help Housing Stimulant Assistance (BSPS) for house renovations.
For information, the Minister of Housing and Settlement Areas (PKP) Maruarar Sirait said that the subsidized housing program was launched massively in September 2025, with a target of at least 25 thousand units.
He explained that the program is part of increasing the quota of national subsidy houses, which this year reached 350 thousand units, up from the range of 200 thousand units in previous years.
The distribution of subsidized housing allocations has been determined for various community groups. Farmers, fishermen, workers and teachers each receive an allocation of 20 thousand units, while drivers are 8 thousand units, and media workers are 3 thousand units.
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Ara said the subsidized housing financing scheme used an interest rate of 5 percent because it was much lower than the commercial housing scheme which reached 12 percent.
He also said that the down payment charged to the public was only 1 percent.
The Housing Financing Liquidity Facility (FLPP) is a housing financing subsidy program provided by the government to help low-income people buy houses under a subsidized mortgage scheme.
Through this program, the government provides cheap funds to channeling banks so that people can get houses with low interest rates, low down payment and long tenor.
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