Indonesia has signed a Memorandum of Understanding (MoU) with Qatar to construct one million affordable homes, a part of President Prabowo Subianto's three-million-housing program.

The agreement was signed on Wednesday by Housing Minister Maruarar Sirait and Sheikh Abdulaziz bin Abdulrahman Al Thani, chairman of Qilaa International Group, at the presidential palace. President Prabowo was present at the signing.

"We prioritize the lower middle class who lives in the cities," Minister Sirait told reporters, as quoted by Reuters.

The Indonesian government will provide the land for the construction, while the Qatari investor will finance the project and act as the contractor, Sirait explained.

Deputy Minister of Housing and Settlement Areas Fahri Hamzah confirmed that Qatar’s funding would be used to develop one million homes but did not disclose the amount. “Qatar sent a representative from the royal family, who is also an investor,” he stated.

Hamzah added that a follow-up meeting would focus on technical aspects, such as land selection and permits. “We welcome everyone. In this case, our Qatari counterpart has responded quite quickly, and we facilitated it,” he remarked, as quoted by Antara.

Hamzah also noted that the program would involve state-owned enterprises and private sector partners. Housing locations will depend on land designated by local partners, aligning with President Prabowo’s preference to prioritize urban areas.

Earlier, Minister Sirait mentioned that foreign investors had begun showing interest in the three-million-housing program. He highlighted plans to optimize state assets, including land confiscated in corruption cases, for housing development. These assets will be legalized as state property through the Directorate General of State Assets and the Land Bank.

The housing program’s 2025 budget includes Rp5.07 trillion (over USD 312 million), with IDR 1.2 trillion allocated for Nusantara, Indonesia’s new capital in East Kalimantan.

President Prabowo has previously stated his intention to construct three million dwellings annually, both in villages and cities, to address housing needs for the lower middle class.