1,000 Units of Flats to be Built on KAI Land

Housing and Settlement Areas Minister Maruarar Sirait announced that the government is partnering with PT Astra International to build flats on land owned by PT Kereta Api Indonesia (KAI). The construction of these flats is part of the three million homes programme, which is a priority policy of President Prabowo Subianto.

The flats are planned to be built on a 6,500-square-metre plot in Tanah Abang. “Regarding the location, I am following Mr Dony Oskaria as Head of the State-Owned Enterprises Regulatory Agency, and the President Director of Kereta Api,” said Maruarar during a visit to the construction site in Jakarta on Sunday, 5 April 2026.

Maruarar, or Ara as he is familiarly known, also stated that the government is preparing regulations for subsidised flats. He explained that the policy will regulate the scheme for subsidised housing built on state-owned land using corporate social responsibility (CSR) financing.

Chief of Corporate Affairs at PT Astra International, Boy Kelana Soebroto, stated that the company will build 1,000 flat units on KAI-owned land. He said each unit measures 35 square metres and consists of two bedrooms and one bathroom.

Boy stated that the flat construction process is targeted to start this year. However, there is no certainty on when the flats will be completed. “As soon as possible after confirmation that the state land is available,” said Boy.

KAI President Director Bobby Rasyidin added that the flats will be intended for low-income communities (MBR) and middle-income communities (MBT). He assessed that the land has potential for development into housing because its location is sufficiently far from the railway tracks and has commercial value.

“If we look ahead, the potential occupants in the next 10 to 15 years will also grow rapidly,” said Bobby. He further opined that the flats to be built represent the future of housing in Indonesia.