Overcoming Backlog, Ministry Of PUPR Prepares Rp23.88 T For Subsidy Of 222,586 Housing Units In 2022

Photo of the Ministry of PUPR's Doc

JAKARTA - The Ministry of Public Works and Public Housing (PUPR) continues to work to overcome the housing shortage (backlog) and encourage low-income people (MBR) to have decent housing.

One of them is by allocating a budget of IDR 23.88 trillion for subsidies of 222,586 units this year.

PUPR Minister Basuki Hadimuljono said the PUPR Ministry encouraged the community, especially the MBR, to have decent housing.

This is the target of the 2020-2024 National Medium-Term Development Plan (RPJMN).

Basuki added that the government is targeting to increase access to decent housing from 56.75 percent to 70 percent or the equivalent of 11 million households.

“The government is committed to providing decent housing for low-income people. We hope that we can improve the quality of life of the beneficiaries by having a more decent, healthy, and comfortable home", said Minister Basuki in a written statement quoted on Monday, August 1.

To increase MBR's access and affordability to housing financing that is livable, the Ministry of PUPR continues to provide housing financing facilities and assistance in the form of Housing Financing Liquidity Facility (FLPP), Savings-Based Housing Financing Assistance (BP2BT), Down Payment Subsidy (SBUM), and Tapera Financing.

"In the 2022 Fiscal Year, the Ministry of PUPR allocated FLPP funds of IDR 23 trillion for 200,000 housing units and BP2BT of IDR 888.46 billion for 22,586 housing units", he said.

Meanwhile, Director General of Public Works and Housing Infrastructure Financing Herry Trisaputra Zuna said that until July 28, 2022, the Ministry of PUPR has succeeded in facilitating people to own houses through the FLPP KPR facility as many as 106,346 units or equivalent to 53.2 percent of the target and BP2BT as many as 3,024 units or 13,4 percent of the target.

"With the enthusiasm of the stakeholders to provide houses for the community, we are very optimistic that this target can be achieved", said Herry.

Regarding the availability of land, Herry also said that the government is currently working on providing housing in big cities and metropolitan areas through a vertical housing scheme.

In terms of financing, continued Herry, a creative mechanism is needed that can help MBR to reach the acquisition of condominium units.

These include a lease-purchase scheme, staircase ownership, PPP, and optimizing FLPP funds.

"These schemes are expected to be one of the financing options to enlarge the distribution of housing finance assistance for MBR in urban areas", he said.

The property sector is one of the leading sectors in national economic recovery.

The multiplier effect of the property sector encourages the growth of the construction, materials, and other sectors, either directly or indirectly.

For this reason, in addition to providing financing facilities for MBR, the government has also issued a relaxation policy for the housing sector in the form of the 2022 Government Borne Value Added Tax Incentive (PPN DTP).

"The 2022 DTP VAT incentive policy is given at 50 percent of the 2021 DTP VAT incentive, namely 50 percent for house sales of a maximum of IDR 2 billion and 25 percent for house sales with prices above IDR 2-5 billion", concluded Herry.