Home Affairs Minister Says Public Housing Programme Boosts Regional Economy

Minister of Home Affairs Muhammad Tito Karnavian has emphasised that optimising the public housing programme not only helps people obtain decent housing but also drives economic growth in the regions. The programme will stimulate various business sectors, from banking and property developers to building material shops, while simultaneously creating jobs for the community. “If this housing issue can be handled properly and the problems resolved, besides addressing poverty and people’s difficulties, it will create a rotating economic ecosystem,” Tito said in a written statement on Monday (22/6/2026). He made the remarks while attending a Collaborative Programme for Housing Financing and People’s Economic Empowerment event at the Papua Governor’s Office in Jayapura City on Monday (22/6). Tito explained that the housing issue in Indonesia remains a challenge due to the gap between housing needs and the availability of decent homes. Therefore, President Prabowo Subianto has tasked the Ministry of Housing and Settlement Areas to accelerate the resolution of this problem. According to Tito, this effort requires the support of local governments, including those in Eastern Indonesia. Regional support will accelerate development while improving public welfare. Moreover, if the programme relies solely on the Regional Budget, its reach will be more limited. Consequently, Tito invited local governments to support the housing programme by accelerating and simplifying licensing, among other measures by optimising Public Service Malls. Regions are also encouraged to waive Building Approval retributions and Land and Building Rights Acquisition Fees for low-income communities. “So that developers are motivated to build housing. They can also access KUR, the People’s Business Credit,” Tito explained. On the occasion, Tito also expressed regret that many areas in Papua have yet to issue Building Approvals for low-income citizens. He noted this situation has resulted in unequal access to decent housing. Additionally, the number of Public Service Malls in the Papua region is still relatively limited. Tito therefore suggested that regions without a Public Service Mall study the best practices implemented by Badung Regency and Gianyar Regency in managing integrated public services. “There, you have police handling driving licences, passports, immigration—none of them wear uniforms. Everyone dresses in civilian clothes, yet the results are faster and more optimal,” he said.