Deputy Minister of Housing and Settlement Areas Fahri Hamzah said Thursday that each house will receive a renovation budget of Rp21.8 million. However, he stressed that the challenge extends beyond funding.
“Our capacity for mass renovations currently reaches only 140,000 houses per year. Achieving the 2-million target is impossible without the help of technology,” he said.
Hamzah noted that in many villages, extended families often share a single home, many of which are considered uninhabitable. These conditions are widespread across Indonesia, including in coastal areas, along riverbanks, and in other vulnerable locations.
“That’s why the government plans to carry out large-scale renovations of village housing nationwide. The target has now been increased to 2 million housing units,” he added.
Previously, the Ministry of Housing and Settlement Areas proposed renovating 2 million units in 2025, citing data that over 26 million houses nationwide are considered uninhabitable.
In addition, Minister Maruarar Sirait proposed the construction of 500,000 subsidized housing units in 2026 during a recent cabinet meeting.
On July 1, Sirait also allocated a Housing Financing Liquidity Facility (FLPP) mortgage quota for 15,000 subsidized homes for low-income communities and civil servants in North Sumatra.
The province has a housing backlog of 938,000 units — accounting for 9.5 percent of the national total.
North Sumatra Governor M. Bobby Afif Nasution noted that the FLPP scheme offers accessible housing loans, including low down payments, affordable installments, and built-in insurance coverage for residents.
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Translator: Aji Cakti, Resinta Sulistiyandari
Editor: Anton Santoso
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