Budget Shortfall of Rp96 Trillion Threatens to Stall 3 Million Homes Programme
The funding requirement for the national housing sector is far higher than the available budget. Chairman of Commission V of the Indonesian House of Representatives (DPR RI), Lasarus, highlighted that this substantial need remains a major challenge for the government in reducing the home ownership backlog. “Our backlog is Rp96.08 trillion. Only with this 3 Million Homes Programme can we catch up,” Lasarus stated during a working meeting with Commission V on Thursday (25/6/2026). He urged the government to commit to reducing the housing backlog figure. “We are working to reduce the housing backlog, including through the Self-Help Housing Stimulant Assistance (BSPS) programme, by considering environmental, social, and good governance aspects,” Lasarus said.
Meanwhile, the Ministry of Housing and Settlement Areas (PKP) revealed the enormous budget requirement to pursue the 3 Million Homes Programme target by 2027. This requirement far exceeds the indicative ceiling provided by the government. Secretary General of the Ministry of PKP, Didyk Choiroel, explained that the ministry’s current indicative ceiling is Rp9.913 trillion. This budget is considered insufficient to support all the established development targets. “For flats, it is only Rp32.48 billion, which is only enough for 10 per cent of the multi-year contract. Then for BSPS, the indicative ceiling is Rp8.9 trillion for a target of around 370,000 units,” Didyk said.
The ministry’s overall budget requirement reaches Rp106 trillion. These funds are needed to execute various priority programmes, ranging from new house construction and the renovation of uninhabitable homes to post-disaster rehabilitation. In addition to the 3 Million Homes Programme, the ministry must also complete the construction of permanent post-disaster housing in Sumatra, which still requires significant budget support. “Under these conditions, the budget requirement for 2027 amounts to Rp106 trillion, resulting in a shortfall or budget backlog of Rp96.086 trillion,” Didyk stated.