[REVISION HISTORY]

Indonesia housing deficit and affordability initiatives

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What changed

2026-10-09 17:49 UTC → 2026-10-11 09:30 UTC · added ~~removed~~

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. The Ministry of Housing and Settlement Areas (PKP) has since prioritized the self-help housing stimulus program (BSPS), or ‘Bedah Rumah’. While the ministry aims to propose up to 2 million renovation units by 2027 to meet the 2025-2029 Medium-Term Development Plan (RPJM), current allocations for 2027 stand at approximately 311,000 to 315,000 units. To support these efforts, the ministry announced that 92.23 percent of its 2027 budget—roughly Rp10.85 trillion—will be dedicated to housing and settlement programs, with Rp8.67 trillion specifically designated for the BSPS program. In the Nusantara Capital City (IKN), construction of apartment blocks for low-income communities in the Sepaku sub-district has reached 88.22 percent completion. This 65-unit project is expected to be finished by the end of 2026. Additionally, the Public Housing Savings Management Agency (BP Tapera) reported that as of September 10, 2026, subsidized mortgage disbursements under the Housing Financing Liquidity Facility (FLPP) reached 147,871 units, totaling approximately Rp18.4 trillion. The government is working toward a 2026 target of 350,000 units, offering financing terms of up to 40 years for eligible citizens. Expanding these efforts, the government is advancing a pilot program for integrated residential areas that would connect housing developments to gas networks and solar energy (PLTS). ~~Potential pilot locations include industrial zones in North Maluku, Tangerang, and Bekasi.~~

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