Housing Minister hopes Transit-Oriented Development housing can be implemented in other locations

The Minister of Housing and Residential Areas (PKP), Maruarar Sirait, hopes that housing based on the Transit-Oriented Development (TOD) concept, such as the TOD housing in Manggarai, Jakarta, can be implemented in other locations.

“In the Manggarai case, BTN provided the financing, while the land belongs to the railway. The President Director of PT Kereta Api Indonesia (Persero), or KAI, is currently preparing other locations, which will also involve other banks. We are striving to make this happen on a massive scale,” said Maruarar, often referred to as Ara, in Jakarta on Friday.

He also plans to hold meetings with representatives from KAI and PT Bank Rakyat Indonesia (Persero) Tbk (BRI), potentially regarding TOD housing in other areas.

“Hopefully, I am planning to arrange a meeting soon with the President Directors of KAI and BRI. We have already discussed several other potential locations,” he added.

Minister Maruarar Sirait stated that his department is focusing on constructing subsidised low-cost flats (rusun), primarily in urban areas, by utilising state-owned assets.

He noted that the government has already secured several forms of support to accelerate the construction of these flats, including corporate social responsibility (CSR) programmes from Astra, as well as land-use support from various parties.

Maruarar also explained that the development of the Manggarai housing serves as an example of collaborating to utilise state assets through a partnership between KAI and PT Bank Tabungan Negara (Persero) Tbk (BTN) to provide public housing.

Previously, PT Bank Tabungan Negara (Persero) Tbk (BTN) prepared subsidised mortgages with tenures of up to 40 years and a fixed interest rate of 6 per cent until maturity, to expand public access to affordable vertical housing within the Manggarai Transit-Oriented Development (TOD).

Following the groundbreaking of the Manggarai affordable housing in Jakarta on Friday, the President Director of BTN, Nixon LP Napitupulu, stated that this long-term financing scheme is designed to broaden access for the community to city-centre housing through more affordable instalments and long-term interest rate certainty.