Disaster Victims' Home Ownership Dreams Remain Under Threat Due to Budget Shortfall

The Ministry of Housing and Settlement has revealed that budget limitations could potentially hinder the provision of housing for disaster victims in several regions of Indonesia by 2027. The need for post-disaster home construction far exceeds the currently available budget ceiling. Director General of Settlements Fitrah Nur explained that the indicative budget allocation for special housing in 2027 is only Rp37.1 billion. These funds are sufficient to build only a small fraction of the required post-disaster housing. “The special housing allocation of Rp37.1 billion can only accommodate 118 units, primarily on Haruku Island which was affected by a disaster,” Fitrah said during a meeting with Commission V of the Indonesian House of Representatives on Thursday (25/6/2026). In reality, the government must still complete various relocation and housing construction needs for communities affected by disasters in several areas, including East Nusa Tenggara and Sumatra. “We have prepared a budget for the impact of the Mount Lewotobi Laki-laki disaster starting this year, but for next year we have no budget to prepare. Yet the need in East Flores due to the impact of Mount Lewotobi Laki-laki is 2,072 units,” he stated. Beyond East Flores, the need for permanent post-disaster housing is also still required in several other regions affected by natural disasters in recent years. “Then also in Sumatra, post-disaster permanent housing. The current budget is only Rp37.10 billion, while the post-disaster needs that occurred in Sumatra and NTT reach 18,104 units,” Fitrah said. The total budget requirement for providing post-disaster housing reaches approximately Rp5.20 trillion. This figure is far greater than the allocation available in the 2027 indicative budget ceiling. “What we need is Rp5.20 trillion for 18,104 units, especially for three provinces. This is a major challenge in providing post-disaster housing going forward,” Fitrah concluded.