BTN and KAI to Prepare FLPP Scheme, Build 5,400 TOD Homes

JAKARTA, KOMPAS.com - PT Bank Tabungan Negara (Persero) Tbk (BTN) together with PT Kereta Api Indonesia (Persero) or KAI will develop more than 5,400 units of housing based on Transit Oriented Development (TOD) in several major Indonesian cities.

The development will take place in strategic areas integrated with public transportation such as KRL Commuter Line, MRT, LRT, and Transjakarta as part of support for the government’s 3 Million Houses programme.

The collaboration was formalised with a memorandum of understanding signed by BTN’s President Director Nixon L.P. Napitupulu and KAI’s President Director Bobby Rasyidin in Jakarta on Friday (22 May 2026).

BTN’s President Director Nixon L.P. Napitupulu said the TOD-based housing concept is increasingly relevant amid rising urbanisation and land scarcity in city centres. He noted that many workers in Jakarta still live far from the city centre, causing transport costs to account for 20-25% of monthly income. Therefore vertical housing development in city centres is seen as a more efficient and affordable solution for urban residents.

Nixon added that developing station precincts as housing and economic hubs has become a trend in advanced countries such as Japan, Singapore, and Hong Kong. ‘The model is considered able to create urban areas that are more efficient, productive, and comfortable for residents,’ he said.

Meanwhile, KAI’s President Director Bobby Rasyidin said the project combines affordable housing, TOD, and the development of a new business district in Jakarta. ‘We are integrating three elements. First, vertical housing with affordable prices. Second, we realise the TOD concept. Third, we have Manggarai area of 62 hectares that will be designed into a second CBD in Jakarta, equivalent to SCBD,’ he said.

In this collaboration, KAI through its subsidiary KAI Properti will prepare strategic assets for TOD housing development in four cities: Jakarta, Bandung, Semarang, and Surabaya. Planned sites include Manggarai Station, Block G and F in Jakarta with potential around 2,200 units; Kiaracondong Station Bandung around 753 units; Dr Kariadi/Gergaji Semarang around 1,042 units; and Gubeng Station Surabaya around 1,489 units.

In the initial Manggarai development phase, the project will be built on about 2.2 hectares with the first three towers. The project will then continue on an area of about 1.6 hectares to develop eight more towers with a total of around 5,000 units.