Minister Tito Optimistic Public Housing Programme Will Boost Regional Economy
The optimisation of public housing programmes is believed to be able to drive economic growth in the regions by mobilising various business sectors, including banking, housing developers, and building material stores, as well as encouraging job creation for the community.
This was stated by the Minister of Home Affairs, Muhammad Tito Karnavian, while attending the event ‘Collaboration of Housing Finance Programmes and People’s Economic Empowerment’ at the Papua Governor’s Office, Jayapura, on Monday (22/6).
“If these housing issues can be handled well and resolved, in addition to addressing poverty and the difficulties faced by the community, it will create a circulating economic ecosystem,” said Tito.
To date, the housing sector in Indonesia still faces a gap between the demand for houses and the availability of decent housing. Consequently, President Prabowo Subianto has tasked the Ministry of Housing and Residential Areas (PKP) to accelerate the resolution of these issues.
Tito reminded that such efforts need to be supported by local governments, including in the eastern regions of Indonesia. Regional support is said to accelerate development and increase community welfare.
Furthermore, if relying solely on Regional Revenue and Expenditure Budgets (APBD), the reach of housing programmes will be more limited. Local governments are encouraged to accelerate the ease of licensing, including by optimising Public Service Malls (MPP), followed by the exemption of Building Approval (PBG) levies and Land and Building Transfer Duty (BPHTB) for low-income communities (MBR).
“So that developers are motivated to build housing. They can also access KUR, the People’s Business Credit,” said Tito.
The Minister of Home Affairs then expressed regret that many areas in Papua have not yet issued PBG for low-income communities. According to him, this condition results in unequal access to decent housing for the public. Additionally, the number of Public Service Malls in the Papua region was also deemed relatively limited.
Tito suggested that regions without an MPP should study the best practices implemented in Badung and Gianyar Regencies, Bali, in managing integrated public services.
“There, the police handle driving licences, passports, and immigration, and no one is wearing a uniform. Everyone dresses casually (yet the results are faster and more maximal),” concluded the Minister of Home Affairs.