According to him, Indonesia is currently experiencing a backlog of 12.7 million housing units, and the current construction of 600,000 housing units is not enough.
"Some 52 percent of Indonesia's population is now in urban areas, no longer in rural areas, and the construction of 600 thousand houses is not enough, as the need is 12.7 million houses," Thohir said at the launching of the Bank Tabungan Negara (BTN) new logo here on Sunday.
He said that BTN, as a bank that handles home ownership loans (KPR), must offer a solution for young people to get houses in the future.
The minister also hoped that BTN could be a driver in building a housing ecosystem in Indonesia.
He encouraged BTN to cooperate with various parties, such as the state rail company PT Kereta Api Indonesia (KAI), the national housing development firm Perumnas, and the Public Works and Public Housing (PUPR) Ministry, to find potential lands for housing development.
He also encouraged BTN, PT Kai, Perumnas, and the PUPR Ministry to start building vertical housing buildings or apartments.
Furthermore, he said the discounted interest rates on non-subsidized mortgages can be a solution to overcome the housing backlog in Indonesia.
According to him, extending the term of the non-subsidized mortgage from 20 years to 30 years can also be a solution for the housing backlog.
"For example, a mortgage or housing loan is extended from 20 years to 30 years, as average subsidy interest is paid off in 9–10 years. This means that if the mortgage is extended, the subsidy interest can be paid off on time in 10 years," he said.
He said that on-time payments can ease installment payments from the 11th to the 30th year.
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Translator: Shofi A, Kenzu
Editor: Azis Kurmala
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