Iskandar explained that the initiative is coordinated under the Coordinating Ministry for Community Empowerment in collaboration with the state social security agency BPJS Ketenagakerjaan to help workers acquire their first homes.
“This step is a joint effort to fulfill our commitment to ensuring that the majority of workers have access to affordable housing, particularly near transportation hubs and their workplaces,” he said here on Tuesday.
According to him, the assistance aims to reduce workers’ living costs, including commuting expenses. Currently, transportation costs in Indonesia exceed the World Bank’s standard of 10 percent of a worker’s salary.
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Data from the Ministry of Transportation, based on the Statistics Indonesia (BPS) Cost of Living Survey, shows that households in Indonesia spend an average of 12.46 percent of their monthly income on transportation.
“Reducing workers’ living costs is part of Presidential Instruction No. 8 of 2025. At a minimum, it can reduce expenses, increase income, and improve access to facilities that support a healthy and productive life,” Iskandar added.
The minister expressed hope that workers who receive assistance will be able to occupy their first homes within three years.
In addition to Pasar Minggu Workers' Flat, similar housing projects for 10 thousand workers are planned to be built gradually in East Java, Central Java, Banten, and Jababeka Cikarang (West Java).
The entire program, designed to provide housing near workplaces, is expected to be completed by 2029.
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Translator: Asep, Kenzu
Editor: Rahmad Nasution
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