Indonesia housing deficit and affordability initiatives

Indonesia is implementing various initiatives to address significant housing deficits and substandard living conditions. Initially, Danantara Indonesia focused on supporting a government priority program to provide 3 million houses. During the Danantara Housing Expo 2026, officials noted that millions of households live in homes that are either substandard or do not meet adequacy standards. To address this, Danantara collaborated with the Ministry of Housing and Settlement Areas to offer affordable housing and financing through various developers.

Following these efforts, the Ministry of Housing and Settlement Areas expanded its focus toward renovation through the self-help housing stimulus program (BSPS), or ‘Bedah Rumah’. The ministry aims to propose up to 2 million renovation units by 2027 to ensure decent living conditions for low-income communities. Additionally, the Public Housing Savings Management Agency (BP Tapera) reported progress in subsidized mortgage disbursements, with financing reaching approximately Rp18.4 trillion for over 147,000 units as the government works toward its 2026 targets.