Home Affairs Minister Praises 'People's Tender' in Bandung Housing Programme, Deems It Open and Transparent

Minister of Home Affairs (Mendagri) Muhammad Tito Karnavian personally witnessed a simulation of the Open Shop Selection (PTT), or ‘people’s tender’, in the implementation of the Self-Help Housing Stimulant Assistance (BSPS) programme in Bandung Regency. He praised the mechanism for being open and transparent.

He made the remarks while inspecting the people’s housing programme in Cilampeni Village, Ketapang District, Bandung Regency, West Java, alongside the Minister of Housing and Settlement Areas (PKP), Maruarar Sirait.

Tito assessed that through the PTT, shop owners can openly display the types of building materials they offer along with their prices.

“I have often joined him (the Minister of PKP). This is one of the very good programmes, because with this people’s tender, all the money is completely open. Everything is transparent,” Tito said in a written statement on Saturday (25 July 2026).

On that occasion, Tito also held direct discussions with building supply shop owners. He checked and verified the data on building materials and the prices displayed.

Tito welcomed the mechanism positively because it enables the public to obtain quality building materials at lower prices.

“This means whoever is cheapest will win. And then the remaining money is returned to the people. Please deliberate on what to use it for,” Tito continued.

Furthermore, Tito said the government, under the direction of President Prabowo Subianto, continues to strive to make it easier for low-income communities (MBR) to obtain decent housing.

One such effort is the exemption of the Building Approval (PBG) levy and the Land and Building Acquisition Duty (BPHTB) for low-income residents.

“Now, specifically for low-income communities, the rates are lowered, even reduced to zero. And the definition of low-income communities has been somewhat broadened by the Minister of PKP,” he added.

Tito expressed hope that these facilities would further drive economic circulation in the regions, particularly in the housing sector. He also urged regional heads not to worry about the policy.

This is because increased house construction will have an economic impact that will ultimately help boost regional own-source revenue (PAD).

“With houses built, previously the land was empty and only generated land tax. But once there is a house, the following year it generates land and building tax. So PAD will increase,” he concluded.