Minister's Office Plans 60,000 Flats for Low-Income Citizens and TNI/Polri
The government’s ambition to expand the provision of vertical housing for low-income communities (MBR), civil servants (ASN), TNI-Polri personnel, and the education sector continues to face funding challenges. Combined, the proposed construction of flats by the Directorate General of Urban Housing and the Directorate General of Rural Housing amounts to 568 towers with a total of more than 60,000 units. However, under the indicative budget ceiling for 2027, the available funding is far from sufficient.
Director General of Urban Housing at the Ministry of Housing and Settlement Areas (PKP), Sri Haryati, stated that her directorate has proposed the construction of 412 towers with a total of around 50,000 units for 2027. The programme is part of efforts to address the increasing need for housing in urban areas. ‘We propose allocating 412 towers with a total of 50,000 units, requiring a total budget of Rp36.7 trillion,’ Sri Haryati said during a hearing with Commission V of the House of Representatives (DPR RI) on Thursday (25/6/2026).
The requirement covers various building typologies, ranging from 4-storey to 18-storey flats, tailored to the characteristics of each urban area. However, the current budget allocation is far from adequate to support the target. ‘Our indicative budget ceiling is Rp2.78 trillion, while our total requirement is Rp38.7 trillion, leaving a backlog of Rp35 trillion,’ she explained.
A similar challenge is faced by the Directorate General of Rural Housing. In addition to the Self-Help Housing Stimulant Assistance (BSPS) programme, it has proposed the construction of 156 towers with a capacity of around 10,600 units for various groups, including civil servants, TNI-Polri, educational institutions, and religious housing. ‘For flats, we require a budget of Rp8.451 trillion for 10,600 units or 156 towers,’ said Director General of Rural Housing Rini Dyah Mawarty. She detailed that the requirement consists of 2,928 units for low-income communities, 2,820 units for ASN/TNI/Polri, 2,280 units for religious housing, and 2,400 units for educational housing.