BTN and KAI Launch 5,000-Unit Transit Housing Push to Tackle Jakarta’s Urban Slum Crisis

JAKARTA, Investortrust.id — Indonesia is aggressively pivoting toward vertical urban living to solve its chronic housing deficit. Nixon LP Napitupulu, President Director of PT Bank Tabungan Negara (Persero) Tbk or BTN (BBTN), revealed a strategic pact with the Cabinet Secretariat and national railway operator PT Kereta Api Indonesia (Persero) (KAI) to transform Jakarta’s railway corridors into high-density, affordable housing hubs.

This is a massive shift in Jakarta's real estate strategy, moving from horizontal sprawl to Transit-Oriented Development (TOD). By leveraging state-owned land near rail hubs like Manggarai—the city’s central transit spine—the government is cutting commuting costs for low-income earners while tackling the urban slum crisis. For investors, this signals a major mobilization of state-owned enterprise (SOE) resources toward the "blue-collar" property segment, creating a massive, captive mortgage market for BTN as it moves to finance 5,000 new units in prime metropolitan locations.

The Presidential Order for Humane Living

The move follows a recent field visit by President Prabowo Subianto to the dilapidated settlements along the Senen railway tracks. Appalled by the "inhumane" living conditions, the President ordered an immediate intervention.

“We are reporting on a mutual agreement [with KAI] following the President’s visit to Senen,” Nixon told Investortrust during a press conference on Thursday. The project will focus on several strategic points, including Manggarai, Tanah Abang, and Kampung Bandan. In Manggarai alone, the plan calls for eight towers housing approximately 5,000 affordable apartment units.

Bigger Units, Lower Prices

In a significant departure from the trend of "studio" subsidized housing, BTN is demanding a higher standard of living. Nixon is pushing for unit sizes between 430 and 581 square feet (40 to 54 square meters), a stark contrast to the common 226-square-foot (21-square-meter) micro-apartments currently on the market.

“I always complain to developers: why build 21-square-meter apartments? It’s pitiful if someone has children—where are they supposed to sleep? So, we are striving for units over 40 square meters,” Nixon stated. Despite the larger footprint, BTN insists the units will remain priced significantly lower than typical Jakarta apartments to ensure they reach the intended market of first-time homebuyers.

A Global Blueprint for Local Rails

The project excludes the state housing developer Perumnas due to land-use dynamics, placing KAI’s property arm in the lead role for construction while BTN provides the financing backbone. The demand is expected to be sky-high, given the direct integration with Commuter Line (KRL), Light Rail Transit (LRT), and long-distance train services.

Nixon noted that this model will soon be replicated in other major Indonesian cities, including Surabaya, Bandung, and Semarang. “I recently visited Kyoto, where the train station and housing are integrated as one; it’s completely normal. This isn't a new concept globally, and we are serious about doing this for the 5,000 people in Jakarta who still don't own a home,” he concluded.

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