Minister Tito Optimistic Public Housing Programme Will Boost Regional Economy

Optimalisation of the public housing programme is believed to be able to encourage economic growth in the regions by mobilising various business sectors, including banking, housing developers, and building material shops, as well as encouraging job creation for the community. This was conveyed by Home Affairs Minister (Mendagri) Muhammad Tito Karnavian while attending the Housing Financing and Economic Empowerment Collaboration Programme at the Papua Governor’s Office in Jayapura on Monday (22/6). “If housing can be handled properly and its problems resolved, in addition to addressing poverty and people’s difficulties, it will create a rotating economic ecosystem,” Tito said. The housing sector in Indonesia still faces a gap between the need for housing and the availability of decent homes. Therefore, President Prabowo Subianto has tasked the Ministry of Housing and Settlement Areas (PKP) to accelerate the resolution of this issue. Tito reminded that this effort needs the support of local governments (Pemda), including in the eastern Indonesia region. Regional support is said to accelerate development and improve people’s welfare. Furthermore, if relying solely on the Regional Budget (APBD), the reach of the housing programme will be more limited. Local governments are encouraged to accelerate licensing ease, among others by optimising Public Service Malls (MPP), followed by the exemption of Building Approval (PBG) retribution and Land and Building Acquisition Duty (BPHTB) for low-income communities (MBR). “So that developers are motivated to build housing. They can also access KUR, People’s Business Credit,” Tito said. The Home Affairs Minister then expressed regret that many regions in Papua have not yet issued PBG for MBR. According to him, this condition impacts unequal access to decent housing for the community. The number of MPPs in the Papua region is also considered relatively limited. Tito suggested that regions that do not yet have MPPs should study the best practices implemented by Badung Regency and Gianyar Regency in Bali in managing integrated public services. “There, there are police officers handling driving licences, passports, immigration, and none of them wear uniforms. Everyone dresses normally (but the results are faster and more optimal),” concluded the Minister.