Deputy Minister of Housing and Residential Area Fahri Hamzah made the announcement during a World Bank-hosted discussion in Jakarta on Monday.
He also confirmed the continuation of the ministry’s Self-Help Housing Stimulant Assistance Program (BSPS), which previously supported the renovation of around 140,000 houses annually.
Under the current administration, the target has been raised significantly to two million houses per year.
“Although the current government has only about six months left until December 2025, the President has firmly stated that two million houses must be renovated,” Hamzah emphasized.
Each renovated house will receive a subsidy of Rp21.8 million from the state budget.
To meet the target set by President Prabowo Subianto, the Ministry of Housing is coordinating closely with other ministries and technical agencies, Hamzah added.
“Ramping up from 140,000 to two million units requires massive effort, serious planning, and accountability,” he noted.
Hamzah also highlighted the need for alternative financing schemes, such as microcredit, to complement the subsidy and involve local developers and communities.
“If the subsidy is only around Rp20 million, we must find ways to supplement it through microcredit-based approaches,” he said.
The deputy minister concluded by stressing that the program’s budget should prioritize upgrading slum areas, especially those along coastlines and rivers, to improve their livability for families.
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Translator: Fauzan, Kenzu
Editor: Anton Santoso
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