Cheap Housing Program Conducted In Indonesia

Housing is one of the necessities in human existence. With advancement in lifestyle we are not limited to basic shelter concept but we look for a shelter with four walls, a roof having proper amenities. The cost of a dwelling may not be very affordable for many and that is the reason why the cheap housing decor via perumnas  is taken up.

The beginning of the program in 2015 

In 2015 the government effectively implemented this cheap housing program with Rp 5.1 trillion as budget set aside to support the construction of low – cost housing. The Housing Financial Liquidity Facility Program (FLPP) worked closely with banks and property developers and constructed 75000 building units ready for occupancy in the month of July in 2015. The government noticed the high response of this program in the first years itself and decided to increase the budget. Rp 97 trillion was thus sanctioned to be invested in this sphere for the year of 2017.

Sales mechanism for 1 million housing units

According to Syarif Burhanuddin, Director General of Housing Provision of the Ministry of Public Works and People’s Housing (kemenpupera) the million housing units can be categorized into type types. The categorization is as follows: 600000 homes are for low income communities (MBR) and the other 400000 are for non MBR residents. The homes of the MBR are certainly equipped with KPR subsidy system while those allotted to the non MBRs are left entirely to developers and banks as mortgage providers.

The down payments of the houses are made quite affordable and friends of Perumnas can get a house with a down payment of 1 to 10%. Also, the government is ready to support the low income communities with USD Rp 4million if they truly are in need of it. Finally, the installments are also taken care of so that they are not burdensome. A shelter can be completely afforded in Rp 800000 per month within 15 years.

The ultimate idea

The Director General stated that the program is not a home sharing event from the government to the community. The community wants to build houses on the land provided by the local government. It is similar to ordinary mortgage program keeping the down payment, installments etc fairly easy. The socialization is yet not effective though it aims to achieve betterment in following years.

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