Jakarta, CNBC Indonesia \u2013 Weak sales of subsidised homes have\nprompted developers to propose a change in how government funding is\nused. The Association of People\u2019s Housing and Settlement Developers\n(Himperra) has proposed considering the transfer of funding for 100,000\nunits under the Self-Help Housing Stimulus Assistance (BSPS), or Home\nRenovation programme, to the Housing Financing Liquidity Facility\n(FLPP).<\/p>\n
The proposal comes as FLPP disbursements remain well below the annual\ntarget. As of 9 October 2026, financing for subsidised homes had been\nprovided for just 177,161 units, against a target of 350,000. The\ngovernment therefore still needs to finance around 172,839 units by the\nend of the year.<\/p>\n
Himperra chairman Ari Tri Priyono said the main problem affecting\nsubsidised-home sales was the weak purchasing power of low-income\nhouseholds (MBR). Government support should therefore be directed\ntowards helping prospective buyers obtain homes at more affordable\nprices.<\/p>\n
\u201cFrankly, subsidised-home sales have fallen sharply this year because\nthe purchasing power of low-income households has weakened. The\ngovernment needs to show greater support,\u201d Ari told CNBC Indonesia on\nMonday (12 October 2026).<\/p>\n
Himperra has proposed a government incentive of Rp20 million for each\nsubsidised home. The assistance is expected to reduce the selling price\nand ease the burden on people buying their first home.<\/p>\n
The assistance would not be a discount that developers have to fund.\nThe proposed scheme is government support to strengthen people\u2019s ability\nto buy homes, particularly for low-income groups still struggling to\nraise a deposit and meet instalment payments.<\/p>\n
\u201cThe incentive we are proposing is not a price reduction funded by\ndevelopers, but government support to strengthen people\u2019s ability to buy\nhomes. The Rp20 million per-unit assistance is expected to bring down\nthe price of subsidised homes and ease the burden on prospective\nbuyers,\u201d Ari said.<\/p>\n
The additional incentive is expected to help increase take-up under\nthe FLPP, which has a target of 350,000 units in 2026. However,\nredirecting BSPS funding still requires further discussion, including\nthe budget rules, implementation mechanism and whether the assistance\nwill reach the intended beneficiaries.<\/p>\n
\u201cSubsidised-home sales have fallen sharply this year because the\npurchasing power of low-income households has weakened. The government\nneeds to provide greater support so that people who need homes can\nafford to buy them,\u201d Ari said.<\/p>\n
Alongside financing, developers have raised concerns about licensing\nprocesses that they say are still holding back housing construction in\nseveral regions. Ari cited licensing in West Java, which he said\nremained stalled without a decision from the regional government.<\/p>\n
Himperra has proposed bringing housing permits under a more\nintegrated process led by the Ministry of Housing and Settlement Areas.\nAri said certainty over permits was needed for developers to prepare\nland and carry out projects, while prospective buyers needed\nstraightforward access to financing.<\/p>\n
\u201cThe key point is that developers need certainty to build, while\nprospective buyers need support to access financing easily and quickly,\u201d\nAri said.<\/p>\n
Subsidised-home prices have already risen. In 2026, the price in\nJava, except for certain areas, and in Sumatra is Rp166 million.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/subsidised-home-sales-plunge-as-developers-propose-rp20-million-incentive-per-unit-1791777092", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }