Indonesia Turns to China for Technology to Advance 3 Million Homes Program
Indonesia Turns to China for Technology to Advance 3 Million Homes Program
Jakarta. Indonesia is seeking Chinese construction technology and expertise to help advance President Prabowo Subianto’s flagship program to provide 3 million affordable homes for low-income families, the housing minister said.
Housing and Settlement Areas Minister Maruarar Sirait discussed potential cooperation with Chinese Ambassador to Indonesia Wang Lutong in Jakarta on Wednesday, with the talks focusing on safe and efficient construction technology for high-rise housing in densely populated urban areas.
The meeting followed a visit by Chinese Housing Minister Ni Hong to Maruarar’s office two months earlier.
“The cooperation is aimed at utilizing safe and efficient construction technology for apartment development, particularly in densely populated urban areas,” Maruarar said.
Indonesia is also seeking to ensure that homes built under the program remain affordable and that cooperation with China results in technology transfers to domestic industries, he added.
Maruarar said any housing projects developed under the cooperation should involve local micro, small and medium enterprises (MSMEs), helping create jobs and spread the economic benefits to local communities.
The two countries have established a joint working group to examine regulations, land availability and plans for developing housing areas that could also serve as local economic hubs.
Wang said both sides had appointed officials responsible for overseeing the analysis and planning process.
“The minister and I have appointed officials responsible for both teams, and we will meet again in two weeks to review the process and the progress made,” Wang said.
“We will also exchange experiences on housing technology and the management of residential areas,” he added.
Chinese Companies Invited to Participate
During the meeting, Maruarar invited Chinese and Indonesian private companies to explore participation in the housing program.
He said Chinese investment in Indonesia already has a long track record across strategic sectors, including mining, and has continued to expand.
However, Maruarar stressed that foreign investment must remain aligned with Indonesia’s national interests and the fundamental principles of its foreign policy.
The joint working group is expected to submit an initial progress report on regulatory issues and possible technical arrangements by the end of this month. The findings will serve as a basis for further decisions at the ministerial level.
Indonesia’s housing shortage remains particularly acute in urban areas, where rapid urbanization and limited land availability have made vertical housing an increasingly important part of the government’s strategy.
The Prabowo administration’s 3 million homes program aims to expand access to adequate and affordable housing, particularly for lower-income households.
China’s experience with large-scale infrastructure development and prefabricated and modular construction is among the capabilities Indonesia hopes to tap as it looks for faster and more efficient ways to expand its affordable housing supply.