Indonesian Political, Business & Finance News

House Renovation Stimulus Funds Proposed to Increase, Task Force Reveals Reasons

| Source: DETIK Translated from Indonesian | Social Policy
House Renovation Stimulus Funds Proposed to Increase, Task Force Reveals Reasons
Image: DETIK

The Post-Disaster Rehabilitation and Reconstruction Task Force (Satgas PRR) for Sumatra has proposed increasing the stimulant grant for severely damaged houses from Rp60 million to Rp80 million per unit. The proposal is intended to ensure that homes built for disaster survivors are not only reconstructed but are also more liveable, safe, and comfortable.

The grant increase is part of the government’s effort to accelerate permanent recovery for disaster-affected communities, particularly those who have lost their homes. The PRR Task Force believes that housing construction for survivors must address residents’ basic needs whilst considering long-term building quality.

Head of the National Disaster Management Agency (BNPB), Lieutenant General TNI Suharyanto, stated that the additional funds would be focused on two permanent housing (huntap) construction schemes. The first is in-situ huntap, rebuilt at the original location. The second is independent ex-situ huntap, built in a new, safer location away from disaster risk.

“So, the in-situ ones total 8,000. Independent ex-situ also 8,000. So, approximately 16,000 in total. But so far, those who have applied, whose data has been submitted to the BNPB, number around 14,500 from the regions, bottom-up from regional heads,” Suharyanto said in a written statement on Friday (3/7/2026).

He made the statement following a Ministerial-Level Coordination Meeting regarding the Proposed Adjustment of Stimulant Grants for Severely Damaged Houses Affected by Disasters at the Coordinating Ministry for Human Development and Culture office in Jakarta on Thursday (2/7/2026).

According to Suharyanto, the proposed adjustment of the grant value to Rp80 million per unit is based on two main considerations. The first is the increase in building material prices. The second is the government’s commitment to improving the standard of liveability for survivors so that the houses built are more ready for occupancy.

The additional Rp20 million per unit is planned to be directed towards improving the physical quality of the buildings. These improvements include installing ceramic tiles in all rooms and bathrooms, installing ceilings, applying smoother wall plaster finishes, and adding a terrace to make the homes more liveable and functional for affected families.

“Meanwhile, the current Rp60 million scheme does not include ceramic tiles or smooth plastering. The bathroom is not tiled. If we add Rp20 million later, everything will be tiled. Besides that, there will be a ceiling, then a terrace outside, and the bathroom will be fully tiled,” Suharyanto explained.

Currently, the BNPB is accelerating the construction of in-situ and independent ex-situ permanent housing in three affected provinces. Out of the total requirement of approximately 16,000 units, around 800 units have entered the construction phase. Suharyanto confirmed that the proposed grant increase has received consensus at the ministerial and institutional level and is now awaiting the President’s decision.

Head of the PRR Task Force for Sumatra, Muhammad Tito Karnavian, fully supports the proposal as a solution to accelerate the recovery of residents’ housing. Tito explained that the construction of in-situ and independent ex-situ permanent housing has a high level of complexity because the units are scattered across many points. Therefore, the PRR Task Force has proposed using the BNPB’s Ready-to-Use Fund (DSP) mechanism to make field implementation more flexible, faster, and better targeted.

“The in-situ and independent ex-situ permanent housing that is the responsibility of the BNPB is more complex because the units are separate. So, a separate mechanism will be used, and we are proposing the Ready-to-Use Fund mechanism, because the BNPB is indeed flexible,” Tito stated.

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