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

Jakarta, VIVA – Minister of Housing and Residential Areas (PKP) Maruarar Sirait, known as Ara, has cautioned housing developers to safeguard public trust, especially as various incentives and business facilities have already been extended to the property sector.

According to him, the government will continue to act fairly towards all developers committed to building quality homes in accordance with regulations. However, the government will also not hesitate to provide guidance or impose sanctions on developers who violate the rules and harm the public.

“As minister, I will be fair to developers. I hope there will be no 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 pursue policies that side with the public whilst fostering a healthy business climate for players in the housing industry.

Numerous facilities have been provided, ranging from exemption from the Land and Building Acquisition Duty (BPHTB) and the Building Approval (PBG) for low-income households (MBR), free issuance of house certificates, to simplified financing requirements so that more people can own homes. Through increasingly close collaboration between the government and developer associations, the provision of decent housing for the public is expected to accelerate.

Meanwhile, digital transformation, regulatory compliance, and innovation in the property sector are expected to strengthen the national housing ecosystem whilst supporting economic growth and the success of the 3 Million Houses Programme.

For context, Minister of Housing and Residential Areas Maruarar Sirait has invited housing developers in East Java (Jatim) 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 subsidised FLPP housing provided by the government, so that the homeownership backlog can be addressed.

Moreover, the government has ensured that the FLPP interest rate remains at 5 per cent until the end of the loan term, which can be extended up to 40 years. Meanwhile, down payments start from 1 per cent of the house price.