Gobel: Japan Proposes Sustainable Housing Development in Indonesia

JAKARTA, investortrust.id – Chair of the Indonesia-Japan Parliamentary League, Rachmat Gobel, announced Japan’s proposal to develop sustainable housing, buildings, and cities in Indonesia. The initiative aims to tackle climate change challenges and adapt to the global economy's fluctuating demands. This proposal aligns with President Prabowo Subianto's priority to construct 3 million homes annually.

“There is a spirit encapsulated in the phrase Japan technology and Japan quality. Japan is ready to support President Prabowo Subianto’s program to build 3 million homes,” Gobel said on Thursday, January 16, 2025.

Gobel delivered his remarks during the opening of a two-day seminar titled Sustainable Housing, Building, and Cities in Indonesia, held on January 14-15, 2025, at the Fairmont Hotel, Jakarta.

The event featured notable participants, including Deputy Minister of Housing and Settlement Areas Fahri Hamzah, Japan’s Ambassador to Indonesia Masaki Yasushi, and representatives from organizations such as the OECD, ERIA, The Building Center of Japan, and JUBA.

The seminar was supported by Japan’s Embassy in Indonesia, JICA, JETRO, Kadin Indonesia, and The Jakarta Japan Club, as part of Japanese Prime Minister Shigeru Ishiba's visit to Indonesia.

Prabowo’s Ambitious Housing Program

Under President Prabowo’s administration, the government aims to construct 3 million homes annually to address housing shortages, particularly for low-income families. This initiative is part of Prabowo’s sixth Asta Cita (Eight Aspirations) program, emphasizing economic equality and poverty eradication.

According to Gobel, the government plans to allocate 1 million homes each for urban, rural, and coastal areas in the program’s first year. To achieve this, Gobel stressed the importance of environmental and social considerations. The construction must avoid building on productive agricultural land, such as rice fields or coastal fisheries hubs.

It also refrain from constructing housing on green zones like slopes or hills critical for water absorption and oxygen supply. The construction must also employ environmentally friendly, durable, and safe technologies and adopt eco-friendly and socially sustainable development concepts for housing areas, Gobel said.

“This balance of environmental and social harmony is essential for promoting both ecological and societal well-being,” Gobel said.

Housing Crisis and Japan’s Commitment

Statistics reveal a pressing need for housing in Indonesia: 9.36% of the population, or approximately 25.9 million people, lives below the poverty line. More than 15.2% of Indonesians, or about 10.74 million families, lack housing, with some estimates from the Real Estate Indonesia (REI) group suggesting the figure could be as high as 25 million families.

To address this deficit, Finance Minister Sri Mulyani Indrawati announced a housing budget allocation of Rp 35 trillion for 2025. This funding will support mortgage subsidies, down payment assistance, and financing through Tapera, govenment-initiated housing saving program.  

“However, the scale of the challenge requires greater funding and participation, especially from private and international investors. Japan’s initiative is a valuable contribution to this effort,” Gobel stated.

Prime Minister Ishiba also expressed strong support for Prabowo’s programs, including food security, industrialization, decarbonization, and infrastructure development. Japan’s presentation at the seminar emphasized environmental sustainability as a cornerstone of its approach.

 

A United Effort

Building millions of homes demands land availability, adequate funding, supportive regulations, and political stability. Gobel highlighted the importance of unity and collaboration among all stakeholders.

“Japan has proven to be a reliable partner, offering mutual benefits and guaranteed quality,” he said.

Gobel concluded by reiterating the vital role of housing: “Homes are sanctuaries, symbols of stability, and foundations for families to pursue their aspirations. A nation’s progress relies on strong families, and ensuring homes for every family is a prerequisite for national advancement.”