Maruarar: 80 percent of PKP budget for renovating 400,000 substandard houses

Jakarta (ANTARA) - Minister of Housing and Settlement Areas (PKP) Maruarar Sirait (Ara) stated that around 80 percent of his ministry’s budget this year is allocated for the programme to renovate 400,000 substandard houses (RTLH). He mentioned that the total budget for the Ministry of PKP in 2026 reaches more than Rp10 trillion, with the majority focused on the Self-Help Housing Stimulus Assistance (BSPS) programme. “Our budget is around more than Rp10 trillion, 80 percent of which we dedicate to house renovations,” said Ara during a press conference at the National Border Management Agency (BNPP) office in Jakarta on Thursday. He explained that this allocation equates to approximately Rp8 trillion used to support the national house renovation target. According to him, the BSPS programme is part of the government’s target to renovate around 400,000 houses in 2026, a significant increase compared to the previous year’s realisation. “Last year, it was 45,000 houses across Indonesia. This year, 400,000 houses. If multiplied by Rp20 million (per house), that’s around more than Rp8 trillion,” he revealed. Ara said that from the total target, 15,000 units are allocated for border areas as part of efforts to equalise development. “This renovation of 15,000 houses is included in the 400,000,” he stated. He added that the implementation of the BSPS programme is carried out by providing stimulus to the community, with an average assistance amount of around Rp20 million per house unit. According to him, the assistance amount can be higher for certain regions like North Maluku and Papua due to higher construction costs. In addition to improving housing quality, Ara believes the programme will also have an economic impact on communities in the regions. “The budget absorption will also make the economy move,” he said. He explained that economic circulation will occur through construction activities, from the need for building materials, transportation services, to local labour. The house renovation programme is part of the government’s policy to improve community welfare while strengthening development in various regions, including border areas.