Mochtar Riady Donates 30 Hectares of Land for Prabowo's Housing Programme
Jakarta, CNBC Indonesia - Lippo Group has provided donated land for the government’s 3 million affordable housing units programme targeting low-income earners. The government, through the Ministry of Housing and Spatial Planning and the National Investment Management Agency (Danantara), plans to construct 140,000 vertical housing units.
Lippo Group founder Mochtar Riady stated that his decision to donate the land was intended to support the government’s housing initiative. “We support the government’s ideas,” he said in the Cikarang area, West Java, on Monday, 9 March 2026.
Riady explained that as a property sector industrialist, he was not seeking business gains from the land donation but rather supporting national economic growth through the property sector’s contribution. “We are not looking at our own benefits, but we are pleased to be able to support the government’s programme,” he noted.
Housing and Spatial Planning Minister Maruarar Sirait stated that Lippo Group’s donated land in Cikarang, West Java covers more than 30 hectares. This represents a public-private partnership to address the housing shortage for Indonesians. “The donated land is 30 hectares. Land prices here range from 15 to 20 million rupiah per square metre. At 15 million rupiah, the total value is 4.5 trillion rupiah; at 20 million rupiah, it is worth 6 trillion rupiah,” he said.
The affordable housing financing will be implemented through state budget subsidies and banking, involving state-owned banks and private banking institutions with loan tenors extending up to 30 years. “We have extended the repayment period to 30 years so that Indonesians’ monthly instalments are not burdensome,” Sirait explained.
Danantara Indonesia CEO Rosan Roeslani stated that this housing development represents a historic milestone, as a single project will produce 140,000 units. This will have significant economic impact, as the property sector has considerable multiplier effects on national economic growth.
“When you consider it, that is substantial. The multiplier effect will be extraordinary in terms of job creation, community empowerment, economic improvement, and stimulating the economy,” he said. “Growth will not only benefit this area in West Java but all of Indonesia. The impact will be felt not just by 140 families but by all Indonesians,” he added.
Housing Task Force Chair Hashim Djojohadikusumo noted that the housing programme will have significant impact because it involves more than 180 economic sectors related to property, construction, and housing businesses. “The housing industry has a remarkable economic multiplier effect. The impact is estimated at 1.5 to 5 times, with some saying 2 times,” he said.