New Home Renovation Programme Rules Issued, Here Are the Full Details

The government, through the Ministry of Housing and Settlement Areas (PKP), has issued a new regulation on the Self-Help Housing Stimulant Assistance (BSPS), or the home renovation programme. The programme is intended to simplify and accelerate the provision of assistance for Low-Income Communities (MBR) as an effort to drive or increase community self-reliance in creating liveable houses, requiring a simplification of the stages in providing assistance.

Minister of Housing and Settlement Areas Maruarar Sirait enacted Minister of Housing and Settlement Areas Regulation Number 6 of 2026 concerning Home Renovation on 28 July 2026. This ministerial regulation aims to improve the quality of uninhabitable houses into liveable houses through the provision of cash assistance to MBR. Furthermore, the regulation is expected to support poverty alleviation, reduce social inequality, and improve the quality of settlements.

Article 2 states that Home Renovation is carried out through the planning stage, the implementation stage, and the reporting stage. Furthermore, as explained in Article 3 paragraph (1), the allocation of home renovation covers the National, Provincial, and Regency/City levels. The determination of this allocation is based on a statistical data-based approach to produce targeted housing policies, taking into account the priority of aid recipients as well as policies or assignments from the President. The implementation of Home Renovation can be carried out through quality improvement/renovation or new construction.

Meanwhile, the determination of aid recipients is carried out by the Commitment Making Officer (PPK) based on the implementation of testing through factual verification results and the results of budget requirement identification. The examination by the PPK is carried out administratively by checking the completeness of documents and the suitability of the data and information between documents from the factual verification results and from the budget requirement identification results.

The criteria for the target Aid Recipients (PB) of the Home Renovation programme are as follows: Owning or occupying the only house with an uninhabitable house condition; Clear land ownership or tenure status that has been verified in accordance with the designation of the settlement area in the spatial plan and the land is not in dispute; Welfare level in decile 1 to decile 4 of the latest national single social and economic data or income at most the provincial or regency/city minimum wage; and Have never received Home Renovation assistance or housing ease and financing programmes from the government for Low-Income Communities.

In addition, there are also PBs who are individual Indonesian citizens affected by disasters. The requirements set are that the house owned, occupied, or controlled suffered damage due to a disaster, and is located in an area that is in accordance with the designation of settlement areas in the spatial plan or other locations determined by the central government, Regional Government, or authorised parties in accordance with statutory provisions.

All PB proposals participating in this programme will be verified by viewing all data uploaded in the digital-based electronic system on the ministry’s official website. The results of the factual verification carried out by the PPK will be set forth in an official report signed by the TPM or a ministry employee assigned and ratified by the Head of BP3KP.

After being declared verified, the implementation of Home Renovation uses a government assistance pattern in the form of money. The disbursement of Home Renovation Funds is transferred by the State Treasury Service Office directly from the state treasury to the PB’s account. “The submission for the disbursement of Home Renovation funds as referred to in Article 20 is carried out by the PPK based on: a. PPK Decree regarding PB; and b. budget plan document containing the PB’s signature on the fund utilisation plan section,” reads Article 21 of the regulation.

Funding for the Home Renovation Programme comes from the State Revenue and Expenditure Budget (APBN). Government assistance is only used by aid recipients to purchase building materials and pay the wages of construction workers/labourers. Once the Home Renovation funds have arrived/entered the PB’s account, the PB is responsible for the use of the Home Renovation funds.

Home Renovation activities are carried out by appointed construction workers/labourers based on the budget plan, including the technical plan. As for building materials, the PB, through the PB Chairperson, has the right to openly choose an efficient building material shop/provider.

“The provisions regarding ordering, delivery, receipt, replacement, and submission of delivery reports as referred to in Article 28 as well as payment for building materials based on the open selection of building material shops/providers as referred to in Article 29 apply mutatis mutandis to the ordering, delivery, receipt, replacement, and submission of delivery reports, as well as payment for building materials to building material shops/providers that send building materials in the implementation of Home Renovation through cooperation as referred to,” reads Article 30 of the regulation.

The PB, facilitated by the TPM or a ministry employee, compiles and uploads a report on the use of Home Renovation funds into the digital-based electronic system on the ministry’s official website no later than 30 calendar days after the physical work progress of the Home Renovation reaches 100 percent. The report is also used as a basis for monitoring, evaluation, and programme performance improvement.