Private home developers have received a blessing by being involved in the construction of 3 million housing units until 2029 launched by President Prabowo Subianto. Supported by the subsidized housing program through the Housing Financing Liquidity Facility (FLPP), it can help residents get houses supplied by private home developers.
Daily Chairman of the Association of Housing and Settlement Developers throughout Indonesia (Apersi) Arison Tanjung stated that Apersi member companies are committed to increasing the realization of public housing, especially in Eastern Indonesia. Based on data from the Ministry of Housing and Settlement Areas (PKP), Apersi has helped the government realize 55,188 FLPP housing units throughout Indonesia.
"Today, we have signed a contract with BTN for 800 units. Maybe next year it can be increased by another 1,000 units. Hopefully, with good regulations from the current Minister of Finance, there will be no backlog, so it will be much better than before," said Arison when met by SUAR on the sidelines of the 26,000 FLPP KPR Mass Acad and Key Handover event attended by President Prabowo Subianto at Pesona Kahuripan 10 Housing, Cileungsi, Bogor Regency, West Java, Monday (29/9/2025).
With a focus on developing public housing in Banten, South Sulawesi, and East Java, medium-scale developers who are members of APERSI will focus on prospective developments, especially in the South Sulawesi area.
The implementation of the FLPP Home Ownership Credit (KPR) program is not just ceremonial. The contract participants who attended as well as private developers have felt the increase in welfare and improvement in living standards that they feel after enjoying access to credit financing facilities to get a house.
Dede Martina (45), is enjoying the benefits of FLPP that have made a real impact and changed her life. Dede, a household assistant, previously lived with her two sons and daughter in a one-room rented house that was damp, unventilated, and far from comfortable. Her job as a household assistant tried to fulfill the needs of a comfortable home, solely for her children.
"With subsidized credit, I can now pay for a decent house, with electricity that continues to run and clean water that continues to flow. I thank you, Mr. President, for making all this happen," said Dede, who was present via teleconference.
BP Tapera Commissioner Heru Pudyo Nugroho stated that FLPP is the government program that is most attractive to the public because of the ease of facilities provided, starting from installments, long tenors of up to 20 years, fixed installment interest, and insurance provided and included in financing.
"In collaboration with 41 banks and 20 developer associations throughout Indonesia, BP Tapera has realized 183,058 units of subsidized housing for low-income people with a financing value of 22.71 trillion," Heru said referring to data on the results of the construction of people's homes which have reached 52 percent of the target of 350,000 homes in 2025.
In carrying out the distribution of mortgages, Tapera works on the basis of the "Public Housing Trilogy" as a synergy of mortgage participants, the government, and banks. The trilogy consists of the role of participants documenting the houses that will be inhabited; the role of the government documenting the houses that are being built; and banks that prepare credit to be distributed.
Program incentives
Minister of Housing and Settlement Areas Maruarar Sirait revealed that in the 11 months since it was established as a separation from the Ministry of Public Works and Housing, it has worked hard across ministries to organize a housing ecosystem with 8 programs.
The eight programs consist of freeing up the Fees for Acquiring Land and Building Rights (BPHTB); freeing up and accelerating Building Approval from 45 days to 10 days; increasing the value of Government Borne VAT (PPN DTP) for houses valued up to Rp2 billion; and easing the Statutory Reserves in collaboration with Bank Indonesia.
In addition, the Ministry of PKP also cooperates with the private sector to encourage the distribution of Self-Help Housing Stimulant Assistance (BSPS) that renovates 40,000 houses; organizes the Rp130 trillion Housing Credit Program to encourage private developers to participate in building public housing; encourages the distribution of FLPP by private banks; and creates a special FLPP program for the Household Assistant segment, teachers, and laborers.
"Mr. President, at the launch of Koperasi Merah Putih, you said that there was a practice of 'greednomics'. Alhamdulillah, sir, now there are 'shareinomics' entrepreneurs who have contributed to building people's houses without using the state budget at all throughout Indonesia," said Maruarar to the applause of the audience.
President Prabowo Subianto welcomed Maruarar's earnestness by expressing his appreciation and pride. Jokingly, the Head of State stated that Maruarar was an anomalous leader in Indonesian culture. The reason is that Maruarar asked him to launch a contract for 25,000 houses, but instead 26,000 houses were handed over on the D-day.
"Usually, leaders promise as high as the sky, the results do not arrive. This is the opposite. The results are more than the promises. This means that there are signs of change, signs of mental transformation and thoughts of leaders who want to provide results for the people. This is an example for our cabinet, to think about how to immediately provide results that are enjoyed by the people," Prabowo said.
Public housing development, according to Prabowo, has always been a motor for economic growth and development. That is why, the government he leads does not hesitate to set a very ambitious development target, reaching 3 million housing units, to be realized during his administration.
"The target of 3 million seems very difficult to pursue. It is true, but those of us who lead the transformation, who want to make changes, must dare to have high ideals, dare to work hard, dare to overcome obstacles together. Our obstacles are still large, but we must not be afraid to correct ourselves, must not pretend to be good and complacent," he said.
In particular, the President expressed his respect for the achievements of Pesona Kahuripan Group President Director Angga Budi Kusuma who has built nearly 15,000 housing units within 8 years. Prabowo called Angga, who was once an office boy, a proud citizen and an inspiration for hard work for young people.
"If someone who used to be an office boy can make a profit of up to Rp120 billion a year, not using fraud, not using corruption, someone who is very simple and has no connections, then this is a son of Indonesia that we should be proud of! I am a general, I respect you. I believe there will be other Angga-Angga because of hard work. You have succeeded," Prabowo said.
