Prime Real Estate for the People: Prabowo Orders Low-Cost Housing on Elite State Land

JAKARTA, Investortrust.id — In a radical shift in urban policy, President Prabowo Subianto is reclaiming elite state-owned land to house Indonesia’s working class. Housing and Residential Areas (PKP) Minister Maruarar Sirait confirmed Monday that the President has ordered the immediate conversion of "premium" government assets into affordable vertical housing (Rusun), signaling an end to the exclusion of low-income earners from strategic urban centers.

For investors and urban developers, this move disrupts the traditional real estate hierarchy in Jakarta. By bypassing the high cost of land acquisition through the use of state assets, the government is making "Transit-Oriented Development" (TOD) accessible to Low-Income Communities (MBR). The involvement of heavyweights like Astra International and Indonesai Railways (KAI) suggests a new "gotong royong" (mutual cooperation) model where the state provides the land, the private sector handles construction, and the new sovereign fund, Danantara, oversees the financing.

Elite Land for Public Good

The mandate specifically targets high-traffic, high-value areas that were previously reserved for commercial or administrative use. Minister Maruarar, often called "Ara," revealed that he has already begun scouting locations with KAI CEO Bobby Rasyidin and BUMN Management Agency Head Dony Oskaria.

"President Prabowo’s direction is clear: state land must be used for the interests of the state and the Indonesian people," Ara stated following a cabinet meeting at the Presidential Palace on Monday. He noted that search efforts are currently focused on the Tanah Abang district in Jakarta and several strategic points in Bandung.

The Astra-KAI Partnership

A critical pillar of this acceleration is the participation of PT Astra International Tbk, one of Indonesia's largest conglomerates. Astra has pledged to build 1,000 apartment units, each measuring approximately 377 square feet (35 square meters) with two bedrooms. Under this agreement, the government provides the land, Astra manages the build via its CSR budget, and the completed units are handed back to the state for distribution.

KAI is facilitating this by providing a 70,000-square-foot (6,500 square meter) plot on Jalan Lada Dalam, near the historic Jakarta Kota Station. KAI CEO Bobby Rasyidin highlighted that the site is commercially prime but safe for residential use, as it sits a significant distance from the active rail tracks. "This is truly the future of Indonesian housing," Rasyidin said during a site survey on Sunday.

Rapid Execution Timeline

The government is moving at a "fast-break" pace. A project in the Pasar Senen area of Central Jakarta, consisting of 324 units, is already under construction and slated for completion by June 15, 2026—just two months away.

Additional projects near the Jakarta Kota and Tanah Abang stations will bring the immediate pipeline to over 1,800 units. Minister Ara emphasized that while speed is a priority, the developments will respect heritage laws, particularly in the Kota Tua (Old Town) area. "If there is a cultural heritage site, it must be respected," Ara noted, confirming that the new apartments near Jakarta Kota will be limited to 3–4 stories to blend with the historic environment.

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