Lippo Group Donates 31.3 Hectares of Land to Support Government’s "3 Million Homes" Program

JAKARTA, Investortrust.id – In a significant boost to the government’s efforts to address the national housing backlog, Lippo Group has officially committed to donating 31.3 hectares of land to the state. The land, provided by PT Lippo Cikarang Tbk, is valued at approximately Rp6.2 trillion and is earmarked for the construction of subsidized housing for low-income families.

The commitment was formalized through a signing ceremony at the Wisma Danantara Indonesia in Jakarta on Monday (June 29, 2026). The project aims to construct 54 residential towers, providing roughly 141,000 housing units.

A Call for National Contribution

Lippo Group Founder, Mochtar Riady, expressed profound pride in the initiative, noting that the proposal originated from his son, Chairman James Riady.

"I am truly happy. I have a son who does not just think about seeking profit, but also pays attention to our nation," Mochtar said during his remarks. He emphasized that in the face of global economic uncertainty and rising social inequality, the business sector must go beyond profit-seeking and actively participate in solving national challenges.

Mochtar expressed hope that this move would inspire other major conglomerates to follow suit. "If about a hundred large national business groups could contribute similarly to the government, the impact on accelerating national development would be immense," he added.

Strategic Economic Multiplier

Highlighting the strategic importance of the housing sector, Mochtar noted that property development acts as a primary engine for economic growth. According to economic studies, housing development stimulates approximately 174 related industries, ranging from construction materials like steel, cement, and glass to furniture, logistics, and labor services.

"Housing is not just a single industry; it moves 174 other industries. Therefore, it should be a locomotive for Indonesia’s economic development," he stated, praising President Prabowo Subianto's focus on the sector as a precise step toward reducing poverty and boosting growth.

Government Commitment

The ceremony was attended by key government figures, including Minister of Investment and Head of Danantara, Rosan Perkasa Roeslani; Minister of Housing and Settlement Areas, Maruarar Sirait; Minister of Finance, Purbaya Yudi Sadewa; and Attorney General, ST Burhanuddin.

Minister of Finance Purbaya Yudi Sadewa expressed his appreciation for the donation, noting that the land will be transferred to the Danantara Investment Agency (BPI Danantara) as state capital participation. He confirmed that the government intends to accelerate administrative processes within one to two months and—in a clear show of support—has pledged that the land donation will be tax-exempt.

"You don't tax someone who is giving something to the state," said Purbaya.

The government expects this collaboration between the public and private sectors to be a pivotal milestone in achieving the ambitious target of building 3 million homes for the public by 2028.