Government Budgets IDR 23 Trillion To Build 200,000 FLPP Subsidized Houses This Year

JAKARTA - The government through the Ministry of Finance (Kemenkeu) is said to have provided a budget of Rp. 23 trillion this year to build 200,000 residential units under the Housing Financing Liquidity Facility (FLPP) subsidy scheme.

The Director General of State Assets at the Ministry of Finance Rionald Silaban said that from 2010 to 2021, the Ministry of Finance had distributed financing to support FLPP housing loans (KPR) amounting to IDR 75.17 trillion or as many as 943,000 housing units.

"This achievement cannot be separated from the participation of all parties in helping to provide decent housing for the community," he said in an official statement, Thursday, March 30.

According to Rionald, the contribution made by Regional Development Banks (PBD) in all regions in Indonesia expands the opportunity to have decent housing. Therefore, the synergy between the government, banks, and PT Sarana Multigriya Finansial (SMF) as a special vehicle for the Ministry of Finance needs to be strengthened.

"The role of SMF as the government's fiscal tool in the program was originally meant to be a welcome for BPDs who can participate more actively in distributing mortgages in their respective regions, so as to minimize the need for housing in Indonesia," he said.

For information, currently the provision of housing is faced with a big challenge to complete the 12.7 million backlog (the gap between the number of houses built and the number of houses needed). This figure continues to grow by 680,000 homes every year.

On the same occasion, SMF President Director Ananta Wiyogo stated that the cooperation that was built with all stakeholders was to realize the government's alignment with small communities.

"We hope this can have a socio-economic impact for the community to be able to improve their standard of living and economy, especially in the current conditions where the pandemic is still rolling," he said.