Indonesia Prepares for Housing Boom with Focus on Transit-Oriented Development
Simplifying Regulations Could Boost Housing Goal
State-Owned Enterprises Minister Erick Thohir believes that simplifying housing financing regulations could significantly contribute to the ambitious goal of building three million houses annually during President Prabowo Subianto’s term.
“I’m convinced that streamlining regulations would be a huge support for the President’s vision and Mr. Ara [Housing and Settlements Minister Maruarar Sirait], who has been tasked with driving innovation in housing projects for the people,” Thohir said during a visit to a public housing site in Margonda, Depok, West Java, on Wednesday.
Financial Support Crucial for Housing Projects
Thohir further emphasized the need for robust financial support for Bank Tabungan Negara (BTN), the institution responsible for homeownership loans (KPR).
“With adequate funding, BTN will find it easier to construct homes for citizens,” Thohir explained. “If BTN receives sufficient funding opportunities, I’m confident they can build 800,000 houses without difficulty.”
The Ministries of SOEs and Housing and Settlement Areas (PKP) are collaborating to deliver quality public housing by offering 30-year mortgages on public housing credit (KPR).
“We agreed on several key aspects, including setting mortgage terms to 30 years. Additionally, we discussed a model public housing project in the apartment style, costing approximately Rp270 million,” Thohir elaborated.
Transit-Oriented Development Offers Urban Solutions
Thohir and Sirait reviewed examples of housing based on the transit-oriented development (TOD) concept at Pondok Cina Train Station in Margonda, Depok, and Tanjung Barat Train Station in Jakarta.
Two housing projects by Perumnas, the national housing development firm, serve as successful examples of vertical housing built by utilizing assets from state rail company PT Kereta Api Indonesia (KAI).
Deputy Minister of SOEs, Kartika Wirjoatmodjo, revealed plans to expand TOD housing projects on PT KAI-owned land in Moggarai Jakarta, Gubeng Surabaya, and Kiara Condong Bandung
Gobeng, Manggarai, Kiara Condong: The Future of Urban Living?
Housing in the Manggarai area is projected to be the largest, spanning 60 hectares, compared to Gubeng, which will be built on a 12-hectare plot. Construction in the Manggarai Station area is expected to take longer due to the need for community engagement with existing residents.
What are some specific strategies or policies that the Indonesian government could implement to overcome these challenges?
## Interview: Indonesia’s Housing Boom
**Host:** Welcome back to the show. Today we’re discussing Indonesia’s ambitious plan to build three million houses annually under President Prabowo Subianto’s leadership. With us is Dr. Suci Hartawan, a housing policy expert from the University of Indonesia. Dr. Hartawan, thanks for joining us.
**Dr. Hartawan:** It’s my pleasure to be here.
**Host:** Let’s start with the recent statement from State-Owned Enterprises Minister Erick Thohir. He highlights the need for simplified housing financing regulations. How important is this for reaching the three-million-house target?
**Dr. Hartawan:** It’s absolutely crucial. [1](https://www.bps.go.id/en/publication/2023/08/31/8ff8b16e0646ae0e43a9925b/statistik-perumahan-dan-permukiman-2022.html) According to recent statistics from BPS-Statistics Indonesia, access to affordable financing remains a major barrier for many Indonesians striving for home ownership. Streamlining regulations can attract more private investment and make mortgages more accessible, which are essential ingredients for achieving this ambitious goal.
**Host:** Minister Thohir also mentions the importance of robust financial support for these projects. What other financial mechanisms could be explored?
**Dr. Hartawan:** The government could consider expanding subsidized housing programs and exploring innovative financing models like Public-Private Partnerships (PPPs). Leveraging state-owned enterprises’ resources, as Minister Thohir suggested, could also play a significant role in funding these projects.
**Host:** What about the focus on Transit-Oriented Development?
**Dr. Hartawan:** Focusing on Transit-Oriented Development is a smart move. It integrates housing with public transportation, encouraging sustainable urban development and reducing traffic congestion. This approach will create more livable and desirable communities and will be crucial for accommodating the growing population of Indonesia.
**Host:** Thank you for sharing your insights, Dr. Hartawan. This is definitely a topic to watch in the coming years.
