Indonesian Housing Minister Proposes New Affordable Schemes
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TANGERANG, Investortrust.id—Indonesia’s Minister of Housing and Residential Areas (PKP), Maruarar "Ara" Sirait, proposed developing alternative affordable housing financing schemes outside the existing government-subsidized Housing Financing Liquidity Facility (FLPP), aiming to provide quality yet affordable homes for Indonesians.
Minister Ara discussed these plans during meetings on Saturday (Mar 15, 2025) with two of Indonesia’s prominent conglomerates: Lippo Group Chairman James Riady and Sinar Mas Group owner Franky Oesman Widjaja, at Siloam Hospital Karawaci, Tangerang. Currently, the government has prepared funds under FLPP for about 220,000 housing units.
“With support from President Prabowo Subianto, Bank Indonesia, Finance Minister Sri Mulyani, and Parliament Deputy Speaker Dasco, funds for another 220,000 units are ready," Ara said, adding that he is considering launching new schemes that might offer even lower prices than FLPP housing, albeit with smaller homes designed attractively.
The minister also stated the Housing Ministry plans to provide at least 100,000 commercial houses, and is actively exploring suitable financing models and designs, which will be tested publicly to gauge market responses.
Minister Ara then strongly emphasized the government's zero-tolerance stance on fraudulent practices within the property sector. Speaking in the presence of the executives of Lippo and Sinar Mas Groups, Ara promised decisive action against developers who deceive buyers, especially lower-income citizens.
“We won't hesitate to take firm actions against rogue developers who cheat people. Ethical conglomerates will have our support, but unethical practices will face strict enforcement,” he asserted, reiterating President Prabowo's clear stance against corruption and mafia practices in any sector.
President Prabowo Subianto recently stated, "I'm ready to sacrifice myself for this nation. We will not back down against corrupt actors or mafia networks," reinforcing the administration's uncompromising approach toward corruption and fraud.