Indonesia Housing Ministry allocates 92% of 2027 budget to housing programs

Indonesia’s Ministry of Housing and Settlement Areas (PKP) has announced its budget priorities for 2027, allocating 92.23 percent, or approximately Rp10.85 trillion, to housing and settlement programs. Minister Maruarar Sirait stated that the ministry aims to keep management support costs below 8 percent to prioritize direct housing provision for the public, particularly low-income citizens. A major portion of this budget, roughly Rp8.67 trillion, is designated for the Self-Help Housing Stimulant Assistance (BSPS) program, targeting 315,000 housing units.

In related developments within the Nusantara Capital City (IKN), the ministry reported that construction of low-income community (MBR) apartment blocks has reached 88.22 percent completion. Located in the Sepaku sub-district of East Kalimantan, the project consists of a four-story tower with 65 units. Officials expressed confidence that the construction, which has a budget ceiling of Rp104.03 billion, remains on track to be completed by the end of 2026.