Government Launches Subsidised Apartment Construction at Meikarta with Target of 141,000 Units
The government has officially commenced construction of subsidised apartment complexes (rusun) at Meikarta in Bekasi Regency, projected to become Indonesia’s flagship subsidised vertical housing project. The initiative forms part of the acceleration of President Prabowo Subianto’s 3 Million Homes Programme, designed to provide adequate housing for low-income communities.
The groundbreaking ceremony marked the beginning of collaboration between the government, state-owned enterprises, financial institutions, and the private sector in advancing affordable housing provision whilst strengthening national economic growth.
Lippo Group formally donated 30 hectares of land to the government through Danantara Indonesia, described as genuine support for the national strategic housing programme. Lippo Group CEO James Riady stated that the land donation decision was made to support President Prabowo’s vision of providing housing for the people.
“We are donating this land because we support a President who has a heart for the people,” said Riady during a site inspection in Cikarang on 8 March.
The symbolic handover took place during the site inspection, attended by Housing Task Force Chair Hashim Djojohadikusumo, Minister of Housing and Spatial Planning Maruarar Sirait, Danantara Indonesia CEO Rosan Roeslani, and officials from West Java Provincial Government and Bekasi Regency Government.
Lippo Group transferred three land parcels to the government to support the development of housing for low-income communities. The 30-hectare land is projected to accommodate approximately 140,000 to 141,000 vertical housing units, equivalent to roughly 5 per cent of the national target for the 3 Million Homes Programme.
Riady added that this initiative was expected to serve as a concrete step in expanding public access to adequate, safe, and affordable housing. “Through collaboration between the government, Danantara Indonesia, state-owned enterprises, and the business sector, this initiative is expected to become a concrete step in expanding public access to adequate, safe, and affordable housing,” he stated.
Housing Minister Maruarar Sirait appreciated the cooperation of all parties who prepared the project until reaching the construction phase in a relatively short timeframe. “We appreciate the hard work of the teams from Lippo Group and Danantara as well as the Housing Ministry team who in approximately two months prepared this project to begin today. We also thank Lippo Group founder Mochtar Riady for his support and contribution to public housing development,” said Maruarar.
According to him, the government had ensured legal certainty before the project commenced, including direct consultation with the Corruption Eradication Commission (KPK) and coordination with local governments regarding land readiness and policy support. “I went directly to the KPK to ensure everything is clear and clean, providing legal certainty for residents who will purchase, for banks, and for developers,” he said.
Maruarar considered vertical housing development as a more efficient solution amid limited land availability. With approximately 30 hectares of land at Meikarta, the project was deemed far more space-efficient compared to conventional landed house construction. “If we built conventional landed houses, it might require approximately 1,200 hectares of land. With vertical development, the land used is far more efficient,” he stated.
He also disclosed that the government was preparing a similar project in Depok City. One identified location is land belonging to the Ministry of Communication and Digital Affairs, covering approximately 45 hectares, with potential to develop approximately 170,000 housing units.
Housing Task Force Chair Hashim Djojohadikusumo described the Meikarta subsidised apartment project as an exemplary model in implementing the 3 Million Homes Programme. Beyond addressing housing needs, the project was considered to have significant multiplier effects on the economy. “The housing industry has a very large multiplier effect on the economy. Its impact can be 1.5 to 5 times economic growth because approximately 185 business sectors are related to property, construction, and housing businesses,” said Hashim.
Meanwhile, Minister of Investment and Industrial Downstreaming/BKPM Head and Danantara Indonesia CEO Rosan Perkasa Roeslani affirmed full commitment to financing the project’s development. “From a financing perspective, Danantara will fully support this project as we view it as a very good project with significant impact. Additionally, state-owned enterprises can collaborate with private contractors in construction,” said Rosan.
Rosan explained that initial construction would be carried out at the first location on approximately 12.8 hectares of land. At this location, 18 subsidised apartment towers approximately 32 storeys tall are planned. Total investment for construction is estimated to reach Rp14 trillion to Rp16 trillion.
The government hopes the Meikarta subsidised apartment project can serve as an example of effective collaboration between the state and private sector in addressing housing shortage whilst accelerating achievement of the target to provide 3 million homes for the Indonesian people.