Harsh Realities Behind 3 Million Homes: Deputy Minister Fahri Apologizes for Missed Target
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JAKARTA, Investortrust.id — Deputy Minister of Housing and Settlement Areas Fahri Hamzah has admitted that the government’s flagship 3 million homes program will fall short of its first-year target under President Prabowo Subianto’s administration.
Speaking after a coordination meeting at the Office of the Coordinating Minister for Infrastructure and Regional Development on Wednesday, Aug. 13, 2025, Fahri publicly apologized for the missed benchmarks. He revealed that several key performance indicators — including renovation works, area development, and provision of public utility infrastructure — have not progressed.
“I reported earlier that renovation is still at zero, area development is still at zero, and public utility infrastructure is still at zero. I apologized for this,” Fahri told reporters in Jakarta.
Existing Programs, But No New Initiatives
Fahri clarified that the current housing programs being implemented are legacy schemes not initiated by the Ministry of Housing and Settlement Areas (PKP). The main subsidized mortgage scheme, known as the Housing Financing Liquidity Facility (FLPP), is funded by the Ministry of Finance and executed by the Public Housing Savings Management Agency (BP Tapera), a state institution operating outside the ministry’s purview.
“Tapera is an institution outside our ministry. We should be focusing on what falls within our own KPIs,” said Fahri, pointing out the lack of direct control over major housing finance tools.
According to him, this division of responsibility has contributed to the lack of measurable progress in newly initiated government housing activities. Meanwhile, budget execution for new developments remains stagnant.
Presidential Office: Housing Remains a Top Priority
In response, the Presidential Communication Office (PCO) reiterated that the 3 million homes initiative remains a top priority for President Prabowo, despite early shortfalls.
“I haven’t seen Bang Fahri’s remarks, but I can confirm the 3 million homes program is a presidential priority,” said PCO Head Hasan Nasbi during a press conference at the PCO headquarters on Thursday, Aug. 14, 2025. He referred to Fahri using an honorific typically reserved for an older brother.
Hasan emphasized that the Ministry of Housing continues to coordinate closely with the President, indicating that the program still aligns with the broader strategic plan.
“Housing is part of the President’s top priorities. That’s all I can say,” Hasan added.
He also noted that progress is ongoing. Based on data from the Housing Ministry, over 200,000 subsidized houses have already reached contract signing — a key step toward providing livable homes.
Call for Budget Review
Amid criticism over slow delivery, Fahri said Coordinating Minister Agus Harimurti Yudhoyono (AHY) is expected to launch a deeper review of budget implementation under the 3 million homes program.
“Minister AHY responded by saying there will be a thorough evaluation of how the state budget is being executed for this initiative, which is indeed his responsibility,” Fahri noted.
The remarks come at a time when policymakers are under pressure to deliver on President Prabowo’s ambitious housing agenda, which aims to tackle Indonesia’s housing backlog and stimulate economic growth through the construction sector.
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