Home Affairs Minister Tito: Optimising Public Housing Programme Will Spur Regional Economic Growth
Home Affairs Minister Muhammad Tito Karnavian has emphasised that optimising the public housing programme will not only help people obtain decent housing but also drive economic growth in the regions. The programme will stimulate various business sectors, from banking and housing developers to building material shops, while creating jobs for the community.
“If this housing issue can be handled properly and its problems resolved, besides addressing poverty and people’s hardships, it will create a revolving economic ecosystem,” the minister said during the Collaboration on Housing Financing and People’s Economic Empowerment Programme event at the Papua Governor’s Office in Jayapura on Monday.
Mendagri explained that housing remains a challenge in Indonesia 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 issue.
He said these efforts need support from local governments, including in Eastern Indonesia. Regional support will accelerate development while improving community welfare. Moreover, relying solely on regional budgets would limit the reach of housing programmes.
Consequently, Mendagri urged local governments to support housing programmes by accelerating and simplifying licensing, including by optimising Public Service Malls. Regions are also encouraged to waive Building Approval retribution and Land and Building Title Transfer Fees for low-income residents.
“So that developers are motivated to build housing. They can also access KUR, the People’s Business Credit,” Mendagri explained.
On that occasion, Mendagri also expressed regret that many areas in Tanah Papua have yet to issue Building Approvals for low-income residents. He noted that this has resulted in unequal access to decent housing. Additionally, the number of Public Service Malls in Papua is still relatively limited.
For this reason, Mendagri suggested that regions without Public Service Malls study the good practices implemented by Badung Regency and Gianyar Regency in managing integrated public services.