Many Subsidized Houses Are Not Targeted

Many Subsidized Houses Are Not Targeted
Residents walk beside subsidized houses in Serang, Banten.(Antara)

The Ministry of Public Works and Public Housing emphasizes the importance of targeting accuracy in the distribution of housing assistance, considering that many subsidized houses are still received by people who are not entitled to them.

In a talk show “Property Technology as an Accelerator of National Economic Growth” in Jakarta, Friday, Director General of Housing at the PUPR Ministry Iwan Suprijanto said that the government still has a lot of homework to do in providing housing, one of which concerns real data on housing backlogs.

According to him, the decline in the housing backlog from 12.7 million in 2021 to 9.9 million units in 2023 is only an indication. In reality, the government still does not have specific individual data on people who fall into the category of needing a house.

“In addition, data on community groups who do not yet have habitable homes is also still incomplete,” said Iwan.

Iwan said the housing subsidy program assistance quota through the housing financing liquidity facility (FLPP) which reached 166,000 units this year had been fully allocated.

However, Iwan found many subsidized houses in several provinces that were empty and unoccupied. The vacancy rate reached 60-80%. In addition, he also highlighted the findings of the Audit Board of Indonesia (BPK) regarding the transfer of subsidized houses to other parties who were not entitled.

Also read: PUPR: One Million Homes Program Semester I/2023 Reaches 480,438 Units

“Therefore, the government supports the addition of the FLPP (quota), but it must be right on target,” he said.

FLPP is a program in the housing sector that allows low-income people (MBR) to own a house with lower interest rates, namely a fixed 5% interest rate during the tenor, with a maximum mortgage installment of 20 years.

Requirements for FLPP mortgage recipients include never having received subsidies or housing financing assistance from the government, not having a house, and having a maximum income of IDR 8 million per month. (Ant/N-2)

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