Indonesian Political, Business & Finance News

PKP allocates 90.55% of 2026 budget for physical housing programmes

| Source: ANTARA_ID Translated from Indonesian | Social Policy
PKP allocates 90.55% of 2026 budget for physical housing programmes
Image: ANTARA_ID

Jakarta (ANTARA) - The Ministry of Housing and Settlement Areas (PKP) has allocated 90.55% or Rp9.34 trillion from its 2026 budget ceiling of Rp10.31 trillion for public housing physical programmes.

Minister of PKP Maruarar Sirait (Ara) stated that this budget composition demonstrates the ministry’s orientation towards accelerating housing construction for the public.

“Public housing construction programmes, BSPS, and so on account for 90.55%. This means our orientation is truly towards public assistance and development in nature,” Ara said at the Ministry of PKP in Jakarta on Thursday.

According to the ministry’s presentation, the PKP’s 2026 budget ceiling after efficiency measures stands at Rp10.31 trillion, targeting 406,260 units.

In addition to BSPS, the budget also covers apartments at Rp373.56 billion, special housing at Rp199.63 billion, infrastructure, facilities, and utilities (PSU) assistance at Rp25.25 billion, as well as slum area and sanitation improvements at Rp170.30 billion.

Meanwhile, the budget for salaries and operations is only 8.91%, and for supervision, control, and monitoring, it is 0.5%.

Ara explained that his ministry is also preparing monthly budget absorption targets to prevent realisations from piling up at year-end.

The Ministry of PKP targets budget absorption to reach 6.21% on 1 May, 17.84% on 1 June, 26.81% on 1 July, and 40.25% on 1 August.

Subsequently, absorption is targeted at 53.15% on 1 September, 67.21% on 1 October, 78.47% on 1 November, and 87.45% on 1 December.

The absorption target up to 31 December 2026 is set at 97.48%, higher than around 96% in the previous year.

“I have changed one fundamental thing. Usually, the target calculation is at the end of the month, on the 30th or 31st. But starting this year, I want it per the 1st,” he revealed.

According to him, reporting per the 1st gives the ministry room to take proactive steps if absorption achievements are not in line with targets.

The Ministry of PKP also targets BSPS absorption to reach 38.34% on 1 August 2026, faster than the previous year which was still zero percent in August.

View JSON | Print