Home Affairs Minister Urges Government-Private Sector Collaboration to Tackle Papua Housing Crisis

Home Affairs Minister Muhammad Tito Karnavian is pushing for collaboration between the government and the private sector to resolve the people’s housing problem through affordable financing policies. He stated this effort could be achieved by removing various building tax burdens and providing a low-interest People’s Business Credit (KUR) for Housing scheme for Low-Income Communities (MBR). “Because if the government alone builds and renovates houses, it will not be enough from the state budget, let alone the regional budget, so one strategy is to encourage the private sector,” he said during a visit to the Grand Royal Regency II housing complex in Jayapura, Papua, on Sunday, 21 June 2026. The minister explained that housing needs in the Tanah Papua region remain a major challenge. According to data he presented, nearly 30 per cent of the population in Tanah Papua still lacks decent housing. To address this issue, the government is preparing various incentive schemes to spur housing development while improving access to home ownership for the public. One measure being taken is the provision of a Housing KUR with very low interest for MBR, around 0.5 per cent per month. Under this scheme, residents only need to provide a down payment of about one per cent, or approximately Rp2.4 million, to own a house worth Rp240 million. The minister hopes this policy will broaden access to home ownership while reducing the burden on residents who currently face relatively high rental costs. In addition to easier financing access, the government is also preparing various fiscal incentives to reduce house construction costs. Consequently, the minister has requested all regional governments in Papua to implement a policy waiving Building Approval (PBG) levies and Land and Building Rights Acquisition Fees (BPHTB) for MBR. “I ask all regional heads, the six governors and 42 regents/mayors across Greater Papua, to truly implement zero per cent for PBG and BPHTB,” he stressed. On the occasion, the minister also appreciated the developer’s commitment to environmental conservation through a greening programme that requires planting at least two trees for each housing unit built. He noted that this step not only improves the quality of the residential environment but also helps maintain soil conditions and public health in the long term.