Government Strengthens Housing Financing for Low-Income People

Minister of Finance Purbaya Yudhi Sadewa (Photo: VOI doc)

JAKARTA - Minister of Finance Purbaya Yudhi Sadewa emphasized the government's commitment to continue to strengthen the access of low-income people (MBR) to decent and affordable housing through various financing instruments and fiscal support.

This commitment is in line with the direction of the President of the Republic of Indonesia to accelerate the provision of housing for the community, including through the development of subsidized apartment houses in urban areas.

This was agreed upon in the Meeting of the Committee for Housing Savings (Tapera) held at the Jusuf Anwar Hall, Ministry of Finance on Wednesday, June 24.

On that occasion, Purbaya emphasized the importance of policy synergy between the central government, local governments, the banking sector, developers and all stakeholders to expand public access to affordable and sustainable housing financing.

"Providing decent and affordable housing is an important part of efforts to improve people's welfare. The government will continue to strengthen various financing instruments and fiscal support so that more low-income people can access their first homes in an affordable and sustainable manner," he said in a written statement, Thursday, June 25.

As a follow-up to the President's direction, the Tapera Committee agreed to use the mechanism for the implementation of the Government-Funded Value Added Tax (PPN DTP) as a solution to support the implementation of subsidized apartment financing for low-income people.

This policy is expected to maintain the affordability of subsidized housing while accelerating the provision of housing for the community.

In addition to discussing fiscal support for subsidized flats, the meeting also evaluated the performance and work program of BP Tapera for 2026, including various innovations and work plans prepared to expand access to housing financing.

The Tapera Committee emphasized the importance of strengthening governance, program innovation, and synergy with various stakeholders to increase the effectiveness of the distribution of housing financing for the community.

Purbaya said that the fiscal support provided by the government must be able to provide tangible benefits to the community while supporting the achievement of the national development agenda.

"The utilization of the Government-Covered VAT mechanism shows how fiscal policy can be used in a targeted manner to support the national development agenda," he said.

Purbaya said that this step is expected to maintain the affordability of subsidized flats while accelerating the provision of housing for low-income people without neglecting the principles of governance and fiscal sustainability.

The meeting also discussed the follow-up to various presidential directives related to the acceleration of the construction of subsidized apartment houses for MBR, including strengthening cross-ministry and agency (K/L) collaboration in supporting the provision of decent, affordable and sustainable housing.

"Through these various steps, the government together with the Tapera Committee is committed to continue strengthening the national housing financing ecosystem to support the improvement of people's welfare and realize more inclusive housing access for all Indonesian people," he concluded.