30% of Workers' Income Spent on Rent to be Redirected, Prabowo: Installment Your Own Home

JAKARTA - President Prabowo Subianto has spotlighted the significant expenditure by workers on rental housing costs, which amounts to around 30% of their monthly income.

The government plans to redirect this burden into instalments for personally owned homes via a programme to construct one million houses.

In his speech, Prabowo stated that the government aims to ensure workers have access to affordable housing through long-term instalment schemes.

“We will assure you that you will eventually own that house. So, the 30% previously used for rent will be reduced; it will be for you to instalment your own home,” Prabowo emphasised in his speech at the International Labour Day or May Day 2026 commemoration at Monas, Jakarta, on Friday (1/5/2026).

“The instalments will be over 20 years; if not possible, 25 years. If not settled in 25 years, 30 years. If not, 35 years, 40 years,” he explained.

According to Prabowo, the government is currently targeting the construction of at least one million houses, to be initiated this year.

These houses will be built near industrial zones and workers’ workplaces.

“This year, we have already reached 350,000 houses, but our target is at least one million houses; we will start one million houses this year as well,” he said.

He also revealed plans to develop new cities, each comprising around 100,000 apartment units. These areas will be equipped with education facilities, sports amenities, daycare centres, hospitals, and public transportation.

“I have ordered that there must be schools, sports facilities, daycare centres, hospitals, and most importantly, transportation,” he stated.

Furthermore, Prabowo mentioned that the government has instructed state-owned banks to disburse people’s credit with a maximum interest rate of 5% per year to support housing financing for low-income communities.

According to him, the housing construction programme also has the potential to create millions of new jobs each year.

“Imagine, one house requires five workers, meaning each year we could create millions of jobs,” he concluded.