Indonesia Accelerates Distribution of Subsidized Housing for Low-Income Communities

Jakarta – The government continues to demonstrate its commitment to providing decent and affordable housing for low-income communities (MBR). One concrete step taken is the acceleration of fund distribution through the Housing Financing Liquidity Facility (FLPP) scheme.

Deputy Minister of Finance Thomas A. M. Djiwandono said that until May 31, 2025, the government had distributed funds of IDR 12.59 trillion through the FLPP scheme.

“The realization of FLPP financing until May 2025 has reached IDR 12.59 trillion, an increase from IDR 10.96 trillion in the previous month. These funds have helped build 101,707 housing units in 379 districts and cities,” he said.

Thomas added that for the 2025 budget year, the government has allocated IDR 18.77 trillion to finance 220,000 housing units.

“Of the total budget, Rp11.5 trillion has been distributed to BP Tapera. The government is also preparing additional funds to support the achievement of the target of 3 million houses,” he explained.

Finance Minister Sri Mulyani Indrawati stated that the FLPP program is one of the main priorities of President Prabowo Subianto’s government.

“The President has continuously instructed ministers to accelerate the implementation of various programs that have been launched. This acceleration is very important, especially for strategic sectors such as the provision of free nutritious food, housing programs including increasing FLPP targets, Red and White village cooperatives, and People’s Schools,” said Sri Mulyani.

Sri Mulyani emphasized that the acceleration of the implementation of this program is not only intended to expand the scope of beneficiaries, but also to encourage economic growth.

Permata Bank Chief Economist Josua Pardede explained that the Low-Income Community (MBR) targeted by the subsidized housing program includes groups with fixed and non-fixed incomes with a level of economic vulnerability.

“Based on government directives, MBR includes low-ranking TNI and POLRI members, ASN, BUMN employees, and informal workers such as street vendors and online motorcycle taxi drivers,” said Josua.

Josua added that there are several technical criteria in determining MBR, such as income limits, never having owned a private home, and other administrative requirements. “The government also limits the size of the house and sets a maximum income limit so that the program is right on target,” he explained.

According to Josua, FLPP involves cooperation between the government and banking. “Partner banks provide low and fixed interest credit, light down payments, and installments subsidized by the government. This makes subsidized housing much more affordable than commercial mortgages,” he concluded. –