Housing and Settlement Minister Maruarar Sirait has identified 1,000 hectares of land in Banten, seized by the Attorney General’s Office, as a potential asset for next year’s target of building three million homes.

 

However, he acknowledged the need for approval from the Ministry of Finance and the Ministry of Land Affairs before using the land. According to him, the state could supply land for the three million homes program under this framework.

 

"The 1,000 hectares come from just one company or individual. There’s a vast amount of seized land that could become capital for the three million homes program," Maruarar stated at the Ministry of Public Works and Housing Auditorium on Monday, October 28.

 

In addition to land seized by law enforcement, Maruarar plans to use bank-seized land from non-performing loans. He also invited the private sector to contribute in two ways: by donating land or assisting with construction in the three million homes program.

 

Maruarar explained that utilizing seized land could ultimately reduce housing construction costs within the program. Land prices currently contribute up to 40% of housing construction costs.

 

The target is to build 3.44 million new homes over the next year. Of these, three million units are intended for households earning below Rp 3.1 million (about US$196.43) per month, 340,000 units for those earning between Rp 3.1 million and Rp 8 million per month, and 100,000 homes for those with monthly incomes above Rp 8 million.

 

All homes for low-income families are expected to receive installment subsidies totaling Rp 21.6 trillion. Meanwhile, households with incomes between Rp 3.1 million and Rp 8 million will receive support in the form of Interest Rate Subsidies, Housing Financing Liquidity Facilities, and Public Housing Savings, amounting to Rp 1.48 trillion.

 

High-income households will be eligible for insurance premium assistance totaling Rp 240 billion next year. As a result, Maruarar estimated the total budget needed for the three million homes program next year to be Rp 23.32 trillion.

 

Original article here

This article is published in partnership with Katadata