Minister Ara Warns Developers: 'You've Been Showered with Concessions'

Minister of Housing and Settlement Areas (PKP) Maruarar Sirait (Ara) has warned housing developers to maintain public trust, especially given the various incentives and ease of doing business that have been granted in the property sector. According to him, the government will continue to be fair to all developers committed to building quality homes in accordance with regulations. However, the government will also not hesitate to provide guidance or sanctions to developers who violate the rules and harm the public. “As a minister, I will be fair to developers. I hope there will be no more need for me to reprimand or sanction any developer. If they have good innovations, the government will certainly support them,” Ara said in a statement in Jakarta on Saturday, 25 July 2026. The government continues to promote various policies that favour the public while creating a healthy business climate for housing industry players. Various concessions have been granted, ranging from the exemption of Land and Building Rights Acquisition Duty (BPHTB) and Building Approval (PBG) for low-income communities (MBR), the provision of free house certificates, to the simplification of financing requirements to make it easier for the public to own a home. Through closer collaboration between the government and developer associations, it is hoped that the provision of decent housing for the public can be further accelerated. On the other hand, digital transformation, regulatory compliance, and innovation in the property sector are expected to strengthen the national housing ecosystem while supporting economic growth and the success of the 3 Million Homes Programme. Minister of Housing and Settlement Areas Maruarar Sirait also invited housing developers in East Java to continue helping the government provide subsidised housing under the Housing Financing Liquidity Facility (FLPP) scheme. Ara also urged the people of East Java to take advantage of the FLPP subsidised housing facilities provided by the government, so that the home ownership backlog can be addressed. The government has ensured that the FLPP interest rate remains at 5 percent until the end of the tenor, which can be extended up to 40 years, with a down payment starting from 1 percent of the house price.