Chairman of the General Association of Indonesian Housing and Settlement Developers (Apersi) 2026-2031 Deddy Indrasetiawan revealed that the realization of subsidized housing construction until the first semester of 2026 on an annual basis (yoy) has decreased by 24 percent compared to the same period last year.
Deddy explained that the decline was influenced by a number of factors, ranging from land constraints, licensing processes to rising building material prices due to conflicts in the Middle East.
This was revealed by Deddy when he was met by reporters on the sidelines of the Inauguration of the Central Board of Directors of Apersi Masa Bakti 2026-2031 in Jakarta, Tuesday, July 21.
"The achievement of the subsidized house target year-on-year in the first semester compared to last year decreased by 24 percent. That must be one of them related to the availability of land friends. In addition to licensing and material increases," he said.
According to Deddy, this condition makes some developers under pressure, although they have not yet experienced bankruptcy.
"Actually it's not a collapse, but they've been 'squeezed', they're at the end. So, they just spend the land that is there, but the land that is bought is actually affected by LSD," he said.
He added that developers did not receive compensation for land affected by the Protected Rice Field (LSD) policy. According to Deddy, based on the results of a meeting with Coordinating Minister (Menko) for Food and Agriculture Zulkifli Hasan, developers who want to continue to use the land have been classified as LSD must provide replacement land.
"Yesterday we met Mr. Zulhas, he said that if you want it (the land to be used), we have to replace it three times the current area. That is if it enters before the moratorium is signed, after the moratorium is signed it must be on the land," said Deddy.
Even so, Deddy said, the LSD problem has begun to show progress. Apersi has formed a task force (satgas) in each Apersi Regional Management Board (DPD) to monitor developer land in residential areas so that it does not fall into the LSD category.
"Earlier, on the sidelines of the event, I spoke with the Director General of Spatial Planning (Ministry of ATR/BPN), Mr. Suyus, regarding the development of LSD. He said it would be completed by the end of July, in August it would be ready to be launched," he explained.
Furthermore, Deddy said, the area most affected by the LSD policy is in West Java and Banten, especially the Tangerang Regency.
"The most severe is if Pak Suyus says in West Java and Banten. Banten is especially Tangerang Regency," he added.
To note, Apersi targets the construction of around 120,000 subsidized houses by 2026. Deddy conveyed this when answering questions from the Minister of Housing and Spatial Planning (PKP) Maruarar Sirait (Ara) in his remarks at the Inauguration of the Apersi Central Board of Directors for the 2026-2031 Term.
"Ready 120,000 (this year)," he concluded.
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