Collaboration Between Agencies Accelerates Implementation of Subsidized Housing Program
By: Rahman Prawira
Decent and affordable housing is one of the most basic needs for the community. Successfully realizing this on a large scale through the Subsidized Housing Program is a prestigious milestone of President Prabowo Subianto’s administration. In recent weeks, collaboration between state agencies has played a central role in accelerating the program’s implementation, from financing to construction to distribution.
The Minister of Housing and Settlement Areas (PKP), Maruarar Sirait, emphasized the importance of synergy with financial institutions to accelerate the realization of subsidized housing. Support from Bank Indonesia (BI) demonstrates the synergy between financial institutions in President Prabowo’s subsidized housing program. To date, the construction of subsidized housing continues to show a positive trend, so the 3 million housing program requires the involvement of various parties and synergy, including with BI.
Meanwhile, Bank Indonesia (BI) Governor Perry Warjiyo stated that BI supports housing programs, including public housing, through two initiatives. First, by providing liquidity incentives to banks that distribute loans. Second, BI also funds and provides sharing for a special public housing program.
A concrete manifestation of this collaboration is BI’s financial support in the form of liquidity incentives worth IDR 80 trillion through a reduction in the Minimum Reserve Requirement (GWM), which has been disbursed by banks for the public housing sector. Furthermore, BI has contributed IDR 155 trillion through the purchase of Government Securities (SBN), approximately IDR 45 trillion of which is focused on public housing. This step reflects BI’s commitment to encouraging inclusive and impactful housing sector growth.
Another strategic step is being implemented through collaboration with national banks. During the signing of a Memorandum of Understanding (MoU) with Bank Rakyat Indonesia (BRI), for the first time in history, the government set a subsidized housing quota for this year at 350,000 units and encouraged BRI to expand its distribution as the main bank for subsidized mortgages (KPRS). This MoU is expected to accelerate and smooth the implementation of subsidized housing, reaching a wider audience.
Furthermore, BRI President Director Hery Gunardi stated that more than 101,000 KPRS (Housing Loan) units had been distributed by June 2025. This distribution was carried out with outstanding financing of nearly IDR 14 trillion, 97% of which was through the Housing Financing Liquidity Facility (FLPP) scheme. BRI also exceeded its July target with 105.88 percent disbursement of the 17,700 unit quota.
In addition to collaboration with financial institutions, this collaboration also spans across ministries. Subsidized housing will be available throughout the country as a manifestation of social justice. The Ministry of Home Affairs (Kemendagri) has provided concrete support through a Memorandum of Understanding (MoU) between the Ministry and the Public Housing Savings Management Agency (BP Tapera). Through this agreement, the Ministry of Home Affairs provides a special quota of 2,000 subsidized housing units for civil servants, facilitates the registration of 1,190 employees in the FLPP mortgage program, and expedites administrative processes such as Land and Building Acquisition Fees (BPHTB) and Building Approvals (PBG) to facilitate access to adequate housing for civil servants.
During the symbolic handover of subsidized housing keys to Ministry of Home Affairs employees, Maruar stated that the FLPP mortgage installment for employees is only IDR 1.7 million per month, significantly lower than the rental cost of around IDR 2–3 million per month. He also commended the Ministry of Home Affairs for its support of the pro-people program, explaining that the Ministry’s support for this process was implemented quickly and with full oversight.
Collaborative efforts are not limited to government institutions. The Ministry of Maritime Affairs and Fisheries has also established a partnership with the Indonesian Ulema Council (MUI). The signing of an MoU between the Ministry and the MUI, along with the presentation of symbolic keys to Quran teachers and Islamic activists, demonstrates the government’s attention to social groups that have traditionally been underserved by housing programs. Furthermore, with the support of Sharia financing through Bank Tabungan Negara (BTN) and BP Tapera, a target of 5,000 subsidized housing units can be immediately distributed to preachers, Quran teachers, and Islamic activists by 2025.
Collaboration between institutions, including Bank Indonesia, national banks, the Ministry of Home Affairs, and the Indonesian Ulema Council (MUI), has formed an increasingly solid ecosystem. Integration of funding support, quota expansion, bureaucratic simplification, and data provision and social distribution are key to accelerating the achievement of the subsidized housing target. The government has demonstrated that this policy is highly pro-people, inclusive, and structured.
