Home Affairs Minister Signs Joint Decree to Accelerate 3 Million Homes Programme

Jakarta (ANTARA) - Minister of Home Affairs Muhammad Tito Karnavian and Minister of Housing and Settlement Areas (PKP) Maruarar Sirait have signed a Joint Decree (SKB) to support the acceleration of the 3 Million Homes Development Programme.

“This decree has been made, implemented on 25 November 2024. The goal, once again, is to make it easier for the people to obtain and build houses. Or also for developers, to build houses for low-income communities at more affordable prices,” Tito said at the Ministry of Home Affairs Central Office, Jakarta, Friday.

The signing took place at the Sasana Bhakti Praja Building, Central Office of the Ministry of Home Affairs (Kemendagri), Jakarta, Friday.

Since the beginning of the administration, Tito said, his party together with the Ministry of PKP and the Ministry of Public Works (PU) has moved quickly to prepare various policies to make house prices more affordable for low-income communities (MBR), including through the exemption of Building Approval (PBG) fees and Land and Building Rights Acquisition Fees (BPHTB).

This policy also adjusts the expanded scope of MBR regulated by the government.

Mendagri explained that through the SKB, the government expands the scope of MBR by changing the regional classification from two to four zones. This step is taken to adjust the criteria of beneficiaries to the economic conditions of each region while expanding public access to the 3 Million Homes Programme.

From a regional fiscal perspective, the existence of new houses can also potentially increase Land and Building Tax (PBB) revenues because previously unproductive land becomes residential areas with economic value.

“So with the existence of buildings, what was originally vacant land, idle, only taxed on the land itself, will subsequently be subject to land and building tax. So they will benefit in the following years,” he stressed.

The event was also attended by Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency (ATR/BPN) Nusron Wahid, Head of the Central Statistics Agency (BPS) Amalia Adininggar Widyasanti, as well as governors, regents, and mayors who participated virtually.