Fahri Hamzah encourages the formation of a special institution to accelerate housing development

Deputy Minister of Housing and Spatial Planning (Wamen PKP) Fahri Hamzah. (Photo: Special)

JAKARTA - Deputy Minister of Housing and Spatial Planning (Wamen PKP) Fahri Hamzah revealed the government's plan to form a special institution to accelerate the development of national housing. This step is prepared to overcome structural problems that have long hindered the provision of people's homes, especially in urban areas.

Fahri explained that the establishment of the institution was a mandate of a number of laws that regulate the acceleration of housing development.

This institution is designed to integrate various authorities that have been fragmented, ranging from land procurement, licensing, financing, to social-based occupancy and occupancy management.

"So far, the authority is spread out. Land in one place, permits in another place, financing in another place. As a result, housing development cannot run fast," Fahri told reporters at the Presidential Palace Complex, Jakarta, Tuesday, December 30.

According to Fahri, the President wants a massive acceleration of the housing sector, especially in urban areas that face land constraints. For this reason, the government is preparing a regulatory framework, both in the form of Presidential Regulation (Perpres) and Government Regulation (PP), as the legal basis for the establishment of the institution.

In terms of the budget, Fahri revealed that the 2026 State Budget had allocated funds for the house renovation program. The President, he said, even agreed to increase the renovation target to two million units, as an effort to answer the backlog of people's housing.

However, Fahri assessed that housing development in urban areas requires a special acceleration mechanism, given the increasingly complex and expensive land issues. Currently, the design of the policy is still being discussed across ministries.

The proposal to establish a housing acceleration agency has also been coordinated with the Ministry of PANRB and the Ministry of State Secretariat.

The government targets that supporting regulations can be passed at the beginning of next year.

In addition, coordination is also carried out with Danantara, especially regarding the provision of land and the development of the concept of transit oriented development (TOD). All of these schemes will be summarized in the framework of the people's housing development acceleration agency which is being prepared by the government.