3 Million Homes Program Boosts Public Housing Growth Throughout 2025
Jakarta – The public housing sector recorded positive growth throughout 2025, in line with the consistent policies of the administration of President Prabowo Subianto and Vice President Gibran Rakabuming Raka in encouraging housing development for the public.
The 3 Million Homes Program is a key driver not only supporting economic growth but also expanding employment opportunities and improving public welfare.
The Minister of Housing and Settlement Areas (PKP), Maruarar Sirait, stated that the 3 Million Homes Program implemented by the Ministry of PKP is in line with the 2025 Economic Package Program and the national workforce absorption agenda.
This program is considered capable of stimulating hundreds of derivative industries in the housing sector.
“We are confident that the 3 Million Homes Program implemented by the Ministry of PKP is in line with the 2025 Economic Package Program and the workforce absorption program. We also encourage the entire housing ecosystem to implement the 3 Million Homes Program, which is pro-people for President Prabowo Subianto,” said Maruarar.
He emphasized that housing development is a crucial instrument for improving public welfare. In addition to providing adequate housing, housing construction also drives regional economic growth and creates millions of jobs.
The government, Maruarar continued, remains committed to implementing the subsidized housing program to reduce the national housing backlog.
One concrete step is maintaining the FLPP mortgage interest rate to ensure it remains affordable for low-income communities.
“We have decided that the FLPP mortgage interest rate for subsidized housing will remain at 5 percent. It remains at 5 percent, so it remains unchanged. Then, on Monday, September 29, 2025, at 12 noon, President Prabowo Subianto plans to launch 25,000 subsidized houses in Bogor,” he said.
The increase in the FLPP quota to 350,000 housing units by 2025 is estimated to absorb around 1.75 million workers.
The government also continues to promote the Housing Credit Program (KPP) or Housing Credit Program (KUR) so that housing construction provides broad benefits, including to informal workers.
“The subsidized housing can be used by domestic workers, motorcycle taxi drivers, and informal workers. We are confident that the construction of these houses will be beneficial,” explained Maruarar.
Meanwhile, Muhammad Iqbal, Director of Commercial Banking at PT Bank Negara Indonesia (Persero) Tbk, stated that the distribution of KPP (Special Purposes Tax) loans has shown positive progress.
In 2025, the realization of national KPP disbursements reached IDR 267.1 billion to 117 debtors, with BNI being one of the largest distributors.
“BNI continues to expand access to KPP financing with the support of various parties to promote the success of the 3 Million Homes Program,” said Iqbal. ****
