30% of Workers' Wages for Rent to be Redirected, Prabowo: Pay Off Your Own Home

JAKARTA - President Prabowo Subianto highlighted the significant portion of workers’ expenditure on rental housing costs, which amounts to around 30% of their monthly income. The government plans to shift this burden into instalments for owning their own homes through a programme to build one million houses. In his speech, Prabowo stated that the government aims to ensure workers have access to affordable housing with a long-term instalment scheme. “We will assure you that you will own that house. So, the 30% previously for rent will be reduced; it will be for you to pay off your own home,” Prabowo emphasised in his speech at the International Labour Day commemoration or May Day 2026 at Monas, Jakarta, on Friday (1/5/2026). “Instalments 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 implemented starting this year. These houses will be built near industrial areas and workers’ workplaces. “This year, we have 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 build 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, hospitals, and most importantly, transportation,” he stated. Additionally, Prabowo mentioned that the government has instructed state-owned banks to provide people’s credit with a maximum annual interest rate of 5% to support housing financing for low-income communities. According to him, this 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.