The decision was announced by Minister of Housing and Settlements Maruarar Sirait during the 50th anniversary celebration of the Indonesian Ulema Council (MUI) in Jakarta on Saturday evening.
"Since its establishment on July 26, 1975, MUI has been a pillar of morality, a spiritual compass, and a key advisor to the government," Sirait said, explaining the reasoning behind the housing program.
During the event, the minister spoke with several recipients. Anwar, a Quran teacher from Bogor, West Java, said he was happy with the improved facilities and neighborhood in his new subsidized home.
Previously, Anwar rented a house in Bekasi for Rp1 million (approximately US$61) per month. Now, he pays Rp1.1 million per month in installments to own his subsidized home.
"Mr. Anwar, by paying just Rp100,000 more each month, now owns his home and no longer needs to rent," Sirait noted.
Another recipient, Mafaza Adinda Rosa, an Arabic teacher from Depok, West Java, said she was grateful for the warm welcome from her new neighbors in Bekasi.
Reflecting on the positive feedback, Sirait expressed hope that MUI would continue supporting the government’s efforts to expand access to affordable housing.
To address Indonesia's housing backlog, Sirait also announced that the government has waived the Duty on Acquisition of Land and Building Rights (BPHTB) — normally 5 percent of a home's value — and Building Construction Approval (PBG) fees.
"In addition, we agreed yesterday to extend the government-borne value-added tax (VAT) scheme for homes priced under Rp2 billion," he added.
So far, the government has also allocated 350 subsidized housing units to other professional groups, including journalists, farmers, and factory workers.
Sirait concluded by thanking MUI for its support of the government's 3-million home renovation program.
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Translator: Mecca Yumna, Nabil Ihsan
Editor: Anton Santoso
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