Joint Ministerial Decree Provides Solution for Land Permits for Subsidised Housing

Commissioner of the Public Housing Savings Management Agency (BP Tapera) Heru Pudyo Nugroho views the issuance of a Joint Ministerial Decree (SKB) between Minister of Home Affairs Tito Karnavian and Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency (ATR/BPN) Nusron Wahid as a solution to overcome land permitting obstacles for subsidised housing construction.

The agreement was reached in a ministerial-level meeting held at Tito’s residence, attended by Minister of Housing and Human Settlements (PKP) Maruarar Sirait, also known as Ara.

This SKB will serve as the basis for accelerating the land permitting process, which has previously been a field-level hindrance.

Heru added that the policy is a strategic step to address the main challenges on the supply side of subsidised housing.

Through this policy, previously constrained land can resume its permitting process, provided it obtains recommendations from local government heads and meets environmental feasibility aspects.

BP Tapera assesses that the inter-ministerial synergy in this policy will strengthen the housing financing ecosystem, particularly in supporting the distribution of the Housing Finance Liquidity Facility (FLPP) programme.

The availability of legal and ready-to-build land is considered a crucial factor in maintaining the sustainability of the programme.

Additionally, BP Tapera appreciates the government’s support, especially the role of the Ministry of Home Affairs in promoting the policy to local governments so that the SKB’s implementation can run effectively in the field, particularly in the licensing recommendation process.

This policy is also seen as aligned with the government’s efforts to accelerate the realisation of the three million homes construction programme, which is part of President Prabowo Subianto’s national strategic programme.