756,120 Houses Built in One Million Houses Program

Thursday, 07 December 2017 , 12:00:00 WIB -

A silhouette of people with the background of an apartment in Jakarta, Wednesday (8/11). (ANTARA)

JAKARTA, GRES.NEWS – Public Works and Public Housing Ministry claims that One Million Houses program has built 756,120 houses until early December 2017. The achievement makes the ministry’s Director General of Housing Procurement, Khalawi Abdul Hamid, confident that they could build more houses this year than the previous years. The ministry built 699,770 houses in 2015, and 805,169 in 2016.

According to him, the achievement is mostly contributed by the development of houses for low-income people (MBR), which reaches 70 percent. Meanwhile, development of houses for non-MBR reaches 30 percent. "619,868 units are houses for MBR, and 145,252 units are houses for non-MBR, so the total is 765,120 units," Khalawi said in Jakarta, Tuesday (5/12).

According to Khalawi, 20 percent of the houses are built by the Public Works and Public Housing Ministry, whether it’s low-cost apartments, special houses, non-government supported houses and facilities and utilities stimulant assistance (PSU). One Million House Program was initiated by President Joko Widodo on April 29, 2015, as a part of the nine development goals (Nawa Cita).

Meanwhile, 30 percent houses are built by subsidized housing developers that get housing loans for low-income people (KPR FLPP), interest margin subsidy and down payment assistance. The rest will be fulfilled through subsidized houses development by developers.

183,977 units will be developed by the Public Works and Public Housing Ministry, 1,566 unity by other ministries and agencies, 148,180 units by the regional administration, 250,916 units by developers. Besides that, CSR also contributes 118 units to the program, while the remaining 35,111 units are developed by the public without a support from the government.

Khalawi said the biggest challenge in implementing One Million Houses Program is land availability and house development permits acceleration that’s not implemented equally in regions.

Solving land availability issue, he hopes Land Bank concept would be applied immediately. Besides that, the government also encourages the development of an independent city that provides wide housing land but still paying attention to balanced housing concept.

"We support the existence of new independent city like Maja. However, we also apply balance housing regulations. We also develop vertical housing because apartment rent is an answer for our millennial generation," he said, as quoted from pu.go.id.

Besides land issue, the central government also support easier permit issuance for house developments by issuing the XIII Economy Policy Package on Housing for Low-Income People (MBR), and Governmental Regulation No.64/2016 on Houses Development for Low-Income People (MBR) on December 29, 2016.

The government claims the regulation provides easier permit issuance for housing development, and strengthen the purchasing power of MBR on houses, such us building construction permit (IMB), and building worthiness certificate (SLF) to maintain the quality of building and housing environment.

"If this regulation were followed by all regions, I believe that the target to build one million houses can be achieved and developers will be excited," Khalawi added. (rm)