Minister Maruarar Hails Kadin’s Role in Driving Crowd-In for Housing KUR as Prabowo Prepares 25,000 Subsidized Homes Launch
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JAKARTA, Investortrust.id — Minister of Housing and Settlements Maruarar Sirait has praised the Indonesian Chamber of Commerce and Industry, or Kadin, for helping accelerate financing participation in the government’s Housing People’s Business Credit program, known as KUR Perumahan.
Speaking on Tuesday, Sept. 16, 2025, at the “Gotong Royong Housing for the Nation’s Legacy” symposium in Jakarta, he underlined that Kadin’s involvement had made the crowd-in process possible by linking property developers, contractors, and banks. A concept from local culture, gotong royong refers to mutual cooperation where communities work together to achieve shared goals.
Crowd-in refers to the entry of private sector participation in financing as a result of public incentives or catalysts, such as government-backed loans or guarantees. Maruarar highlighted the role of Kadin Chairman Anindya Bakrie, noting his ability to mobilize business networks to channel resources into the scheme.
“I want to thank Kadin, Mas Anin, whose networks are extraordinary, mobilizing developers, contractors, and banks to meet under this initiative,” Maruarar said during a press briefing after the symposium. Mas is an honorific rooted in Javanese meaning older brother, used as a polite and respectful way to address men, regardless of actual kinship or age.
The minister also expressed appreciation for the support of Coordinating Minister for Economic Affairs Airlangga Hartarto in rolling out the housing loan scheme, which has already received strong interest from the public.
KUR Perumahan has been promoted not only through Kadin but also via Danantara, the Indonesian Young Entrepreneurs Association, the Jakarta provincial government, and several industry associations.
Rp 130 Trillion Housing KUR Faces Absorption Challenges
Rosan Perkasa Roeslani, Minister of Investment and Downstreaming who also serves as CEO of Danantara, acknowledged that absorption of the Rp 130 trillion ($8 billion) housing loan allocation over the past four months remained a challenge.
Nevertheless, he voiced confidence that Maruarar could improve uptake rates and thereby help reduce Indonesia’s housing backlog, which currently stands at 9.9 million units.
“Absorption is not easy, but I am confident this program will run well. President Prabowo’s plan for three million new homes should move forward quickly and deliver the results we expect,” Rosan said.
Maruarar agreed, stressing that massive socialization efforts were needed alongside fast yet prudent financing schemes. “The challenge ahead is absorption. We must have massive outreach and implement schemes that are effective and quick, while still prudent,” he said.
Prabowo to Launch 25,000 Subsidized Homes in September
Separately, Maruarar announced that President Prabowo Subianto will inaugurate 25,000 subsidized homes on Monday, Sept. 29, 2025. The launch will take place in Bogor, West Java, with simultaneous ceremonies in at least 30 provinces and more than 80 locations nationwide.
“This will be the first time we see such a large, coordinated mortgage signing event for subsidized housing across Indonesia,” Maruarar said after attending a cabinet meeting with the president at the Presidential Palace on Tuesday.
He added that the government had eliminated two major cost components for low-income households: the land and building acquisition fee (BPHTB) and the building permit fee (PBG). These exemptions, he argued, had made subsidized homes more attractive to low-income families.
Maruarar also confirmed that Prabowo himself would attend the launch and is expected to inaugurate the KUR Perumahan program, marking the first time in Indonesia’s history that small business credit is applied specifically to housing.
Kadin’s Renovation Drive and Private Sector Partnerships
Kadin has also expanded its role through the Gotong Royong Renovation Program, targeting the rehabilitation of 500 houses by April 2026. Vice Chairman Thomas Jusman said 109 homes had already been renovated and 37 were under construction across Jakarta, Banten, West Java, Bangka Belitung, East Nusa Tenggara, Central Sulawesi, and Aceh.
“This is part of our collective effort to renovate uninhabitable homes into livable housing,” Thomas said at the symposium.
The program has drawn support from local entrepreneurs, banks, and nonprofit organizations. Bank Nobu partnered with Kadin and the Housing Ministry to co-host the symposium, while other efforts have been coordinated with the Buddha Tzu Chi Foundation and property developer PT Summarecon Agung Tbk, or SMRA.
In Bandung alone, the Housing Ministry, Buddha Tzu Chi, Summarecon, and regional governments have completed 126 renovations. Out of a 500-home target in the city, 54 homes are under construction, 200 will begin work in September, and 120 will follow in later phases. Buddha Tzu Chi has committed to renovating 4,000 homes across Greater Jakarta, West Java, East Java, and Central Java, of which 358 have been completed.
Maruarar recently inspected renovation sites in Bandung alongside West Java Governor Dedi Mulyadi, handing over keys to beneficiaries as part of President Prabowo’s three million homes program. “This initiative shows what we can achieve when government, business, and communities work together,” he said.
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