Coordinating Minister AHY Values TOD for Expanding Affordable Housing Access
The Coordinating Minister for Infrastructure and Regional Development, Agus Harimurti Yudhoyono, has stated that the development of residential areas based on Transit Oriented Development (TOD) is key to building modern cities. The concept also expands access to affordable housing amidst limited urban land.
AHY, as he is commonly known, noted that many modern cities worldwide have adopted the TOD concept to integrate residential areas, economic activity hubs, and public transport networks within a single interconnected zone. “Especially since it is predicted that 70 per cent of the world’s population, including Indonesia, will live, work, and conduct activities in cities,” AHY said, as quoted by Antara on Tuesday, 17 March 2026.
He believes these conditions make urban land increasingly limited, making vertical residential development the most realistic approach to meet housing needs. AHY added that vertical housing development based on TOD allows people to live closer to economic activity centres whilst reducing dependence on private vehicles.
The Democratic Party Chairman also appreciated the role of PT Kereta Api Indonesia (KAI), which holds strategic assets in various major cities with potential to be developed into integrated residential areas. One TOD-based housing development is in the Manggarai Station area, which will be built on approximately 2.2 hectares of land with two development blocks.
The area is planned for development of eight apartment towers with approximately 2,200 units intended for the public, including low-income households.
Beyond Jakarta, TOD area development is also being undertaken at Kiaracondong Station in Bandung, the Dr Kariadi area in Semarang, and Gubeng Station in Surabaya. These four major cities on Java were selected because they have high population density and growing housing needs in line with urban economic activity growth.
Agus Harimurti believes collaboration between government, state-owned enterprises, and investors is key to delivering an integrated and sustainable modern urban development model. Through the TOD concept, the government aims to create a more efficient transport system, reduce congestion, and give people more time to increase productivity.
He emphasised that the development of such integrated areas is also part of the national development vision, which encourages high economic growth whilst maintaining environmental sustainability and equitable public welfare. “We want our development to align with President Prabowo Subianto’s vision of high growth, but also benefiting ordinary people and caring for our earth and environment. This is our collective future,” AHY said.