Indonesian Political, Business & Finance News

Government to Distribute Free Land Certificates, Here Are the Requirements

| Source: CNBC Translated from Indonesian | Social Policy
Government to Distribute Free Land Certificates, Here Are the Requirements
Image: CNBC

The government has launched a free home certification programme for low-income communities (MBR), aimed at expanding legal access to home ownership for the public.

Minister of Housing and Settlement Areas (PKP) Maruarar Sirait stated that this programme is a significant breakthrough resulting from collaboration between the Ministry of PKP and the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN). He noted it demonstrates the government’s commitment to supporting ordinary people who require legal housing.

‘This free certification is a tremendous breakthrough from the collaboration between the Ministry of PKP and the Ministry of ATR/BPN. It is also a form of the government’s partiality towards the little people who certainly need legal housing,’ said the man familiarly known as Ara to the media on Tuesday (14/7/2026).

Ara added that the free certification programme will not only be linked to the Self-Help Housing Stimulant Assistance (BSPS) programme. The government also plans to connect certification beneficiaries with the People’s Housing Credit (KUR) programme.

Meanwhile, Minister of ATR/Head of BPN, Nusron Wahid, confirmed that the free certification programme for the housing sector is fundamentally intended for three community groups. The first group comprises recipients of government housing assistance, such as the BSPS or home renovation programme.

Nusron explained that during the 2015-2024 period, approximately 1.4 million homes benefited from the BSPS programme. However, after a verification process, it was found that 1.1 million of these homes still lacked a certificate.

‘In addition to BSPS recipients from the Ministry of PKP, the government will also include recipients of home renovation programmes from the Ministry of Social Affairs and the Ministry of Health. However, data on these beneficiaries is currently unavailable,’ he said.

The second group eligible for the free certification programme are participants in the Housing Financing Liquidity Facility (FLPP) scheme. The third group consists of people who built their homes independently but fall under the MBR category, with their status determined based on the Minister of PKP Regulation No. 5 of 2025.

Nusron elaborated that for the FLPP programme, the government will provide free certification for the process of upgrading the title from a Building Rights Title (HGB) to a Freehold Title (SHM). He clarified that the cost of splitting the developer’s master HGB into individual HGBs for each buyer is still subject to Non-Tax State Revenue (PNBP).

‘What we are providing for free is the process of upgrading from the already split HGB to SHM. That is what we are making free,’ he stated.

For the third group, independent home builders classified as MBR, formal workers can prove their status by attaching a salary slip. For informal workers, the government will use their inclusion in the National Socio-Economic Single Data (DTSEN) up to the eighth decile as a reference.

‘So, if they are at a maximum of decile eight, they can benefit from this programme. Why decile eight? Because according to the explanation from BPS, the income benchmark set in the PKP Ministerial Regulation number 5 is equivalent to decile eight in that location,’ Nusron concluded.

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