Home Affairs Minister: Private Sector Involvement Key to Optimising Public Housing Programme
Minister of Home Affairs of the Republic of Indonesia, Muhammad Tito Karnavian, has affirmed that involving the private sector is a key factor in optimising the realisation of the People’s Housing Programme.
To that end, the Ministry of Home Affairs will continue to encourage regional governments to provide various conveniences for developers so that housing construction for the public, particularly for low-income communities (MBR), can proceed more quickly.
“What must be done is to push the private sector to work. And their engine is actually far bigger than the government’s engine,” Tito said in a written statement on Wednesday (22/7/2026).
He made the remarks while attending the inauguration of the Central Board of the All-Indonesian Housing and Settlement Developers Association (APERSI) for the 2026–2031 term at The Ritz-Carlton Mega Kuningan, Jakarta, on Tuesday evening (21/7).
According to Tito, resolving the housing backlog cannot rely solely on the State Budget (APBN) and Regional Budget (APBD).
Therefore, the business ecosystem must be accelerated so that the provision of housing for the public can be properly realised.
Tito explained that the government has introduced various policies to make things easier for developers. These include exemptions from the Building Approval (PBG) levy and the Land and Building Acquisition Duty (BPHTB) for low-income communities, as well as simplified licensing through the Public Service Mall (MPP).
However, implementation of these policies is considered uneven across the regions.
Tito therefore asked developers to play an active role in reporting regions that have not implemented the policies optimally.
He also assured that the Ministry of Home Affairs will conduct special evaluations of regions deemed to be hindering the acceleration of housing development.
“I want to get data from developer colleagues on which regions are making things difficult, which regions are sluggish. I want to hold a separate Zoom meeting with them, and if necessary I will issue them a formal warning letter,” Tito asserted.
Tito considered the concerns of some regions about potential losses to Local Own-Source Revenue (PAD) resulting from PBG and BPHTB exemptions for low-income communities to be misguided.
According to Tito, the economic and social benefits generated by housing development are far greater.
He explained that the more people own decent homes, the lower the poverty rate will fall. In addition, housing construction activity will create jobs, boost transactions in the building materials sector, and expand the base of Land and Building Tax (PBB) receipts in the years to come.
To strengthen the policy, the Ministry of Home Affairs will also coordinate with the Financial and Development Supervisory Agency (BPKP) so that the implementation of PBG and BPHTB exemptions for low-income communities becomes one of the aspects monitored in the regions.
Furthermore, the Ministry of Home Affairs will show appreciation to regions that support the people’s housing programme.
In closing his address, Tito invited APERSI to continue strengthening communication with regional heads. According to him, collaboration between regional heads and the developers’ association is an important part of accelerating the resolution of Indonesia’s housing problem.
For information, the event was also attended by the Coordinating Minister for Food Affairs of the Republic of Indonesia, Zulkifli Hasan (Zulhas), the Minister of Housing and Settlement Areas, Maruarar Sirait, the Head of Statistics Indonesia (BPS), Amalia Adininggar Widyasanti, and other relevant parties.