The three groups will be low-income residents working in the informal sector, residents of urban areas, and millennials, Director General of Public Works and Housing Infrastructure Financing, Herry Trisaputra Zuna, disclosed.
"To resolve the housing backlog issues, we need the development of housing financing next year aimed at the first (target) group, the low-income residents in the informal sector, through the rent-to-own scheme combined with contractual savings housing to help them access Tapera (public housing savings)," Zuna said during a discussion on the 2023 economic outlook and prospects for the housing sector, which was followed from here on Monday.
The funding for the second target group -- urban area residents -- would not only be made available for landed houses but also for vertical housing, he added.
"Residents in urban areas directed for vertical housing (are eligible for the) funding provided through the staircasing shared ownership (SSO) scheme, a gradual financing to increase (housing ownership) accessibility," the director general informed.
Funding would also be offered to millennials, the demographic group with an income range that makes them ineligible for subsidies and which is insufficient for purchasing a home on instalment, Zuna said.
He advised the banking sector to devise creative ways to provide housing loans for millennials, including by providing funding schemes of longer durations that are adjustable with the applicants' housing career.
During the discussion, the director general affirmed that the quality of subsidized housing will also remain a priority despite the potential for an economic recession and global financial market volatility in 2023.
Besides addressing purchasing power discrepancy issues among the people, the government expects subsidized housing to also be sufficient for low-income residents, he said.
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Translator: Aji Cakti, Nabil Ihsan
Editor: Sri Haryati
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