Indonesia’s FLPP subsidized housing program shows progress but sales slump

The government’s Fasilitas Likuiditas Pembiayaan Perumahan (FLPP) scheme has delivered 77,532 subsidized homes in 2026, reaching about 22 % of the 350,000‑unit annual target. BP Tapera officials highlighted high occupancy rates—up to 95.65 % in monitored areas—and praised cross‑sector collaboration to keep the program on track.

However, sales of FLPP units have fallen 32 % compared with the same period in 2025, remaining at the same 77,532 units by mid‑June. Developers cite reduced purchasing power, rising material costs, and lingering stigma around subsidized housing as key constraints. To revive demand, some firms are partnering with universities for location research and aiming to support the broader goal of delivering three million homes amid a backlog of 9.9 million units.

The mixed performance reflects both the program’s ability to provide affordable housing and the market challenges that could affect its future expansion.