Sunday, 20 October 2019 | 16:28 WIB

Ministry of Public Works Optimistic about Achieving One Million Houses Program

One million houses program

JAKARTA, NNC - The Ministry of Public Works and Public Housing is optimistic that the achievement of the One Million Houses Program in 2018 is higher than in previous years considering that by 2018 it has reached 582,638 units.

"We are optimistic because it still has around 4.5 months, at the end of the year it reaches one million homes with a proportion of 60-70 percent of homes for low-income people (MBR)," said Director General of Housing Provision at the Ministry of Public Works Khalawi Abdul Hamid in a press release received in Jakarta, Saturday (08/25/2018).

In 2015, there were 669,770 units of one million homes, 805,169 units in 2016 and 904,758 units in 2017.

As one of the efforts to meet the needs of people's homes, President Joko Widodo has launched the One Million Houses Program on April 29, 2015.

The One Million Houses Program is a joint movement by all housing stakeholders in the Central Government, Local Governments, Housing Developers, Banks, Private Companies and the public to overcome the housing backlog in Indonesia.

Director General of Housing Financing of the Ministry of Public Works Lana Winayanti said the number of housing backlogs based on the residential concept of 7.6 million units in 2015 which was targeted to decrease to 5.4 million units in 2019. Meanwhile the housing backlog was based on the concept of home ownership amounting to 11.4 million units a year 2015 which is targeted to drop to 6.8 million units in 2019.

To increase the supply of livable houses, especially those that are affordable for MBR, there are four challenges faced, namely first, the level of affordability of MBR is still low, in terms of buying a house from a developer, building independently or improving the quality of homes that are unfit for habitation.

Secondly, the availability of funds in which housing financing schemes for MBR is limited. Thirdly, MBR access to housing finance sources (financial institutions) to obtain housing loans (KPR) is still limited and the latter are still short-term so that they cannot be sustainable for long-term mortgages.

"MBR actually has purchasing power, but has access difficulty, therefore the Government rolled out a number of programs to facilitate subsidized housing financing," Lana said as quoted by Antara.