Hashim: Housing Programme Capable of Boosting Economic Growth by up to 2 Per Cent

Housing Sector Task Force Chief Hashim Djojohadikusumo believes the housing sector has the potential to make a significant contribution to national economic growth.

According to him, housing development could contribute approximately 1.5 to 2 per cent to economic growth. “I am very confident that we will achieve 8 per cent growth, because from the housing sector alone we have calculated 1.5 to 2 per cent,” Hashim said during a site visit in Cikarang, West Java, on Sunday (8 March 2026).

“Housing has an extraordinary impact on our economy, with a multiplier effect of 1.5 to 5 times. This means that every rupiah we spend on housing also has an extraordinary impact,” he said.

He believes the government’s 3 Million Homes programme can serve as an economic driver as it involves many business sectors. Hashim noted that property development is connected to approximately 185 economic fields, ranging from construction to the building materials industry.

Beyond its economic impact, the programme is also aimed at addressing Indonesia’s housing needs. Government data shows that approximately 27 million families still live in substandard housing. Meanwhile, the number of families awaiting access to adequate housing is estimated to be between 9 and 15 million families.

The land in question encompasses 45 hectares owned by the Ministry of Communication and Digital Technology in Depok, 41 hectares owned by the Ministry of Defence in Central Jakarta, and 30 hectares in Cikarang donated by Lippo Group.

Hashim stated that housing development will involve various parties, both government and the private sector. Danantara Indonesia Chief Executive Officer Rosan Roeslani expressed support for the planned housing development on the donated land. Rosan said Danantara has allocated a budget of up to 16 trillion rupiah to support the development of vertical housing in the area.