Prabowo's Priority Programmes Under Threat, Requiring Rp 25 T but Only Receiving Rp 1.5 T
The Directorate General of Settlement Areas at the Ministry of Housing and Settlement Areas (PKP) has revealed a significant gap between the indicative budget ceiling for the 2027 fiscal year and the actual needs to run various government priority programmes. The budget constraints are considered to potentially limit the implementation of flat construction, housing stimulus assistance, and slum area management.
During a hearing with Commission V of the House of Representatives (DPR RI), Director General of Settlement Areas Fitrah Nur explained that the indicative ceiling received by his agency was only Rp 1.5 trillion. This figure is far below the budget requirements calculated to support the government’s targets.
“The indicative ceiling for the Directorate General of Settlement Areas for the 2027 fiscal year is Rp 1.5 trillion. We emphasise that this ceiling is very far from sufficient to meet the real needs of the priority programmes at the Ministry of PKP,” said Fitrah.
He explained that most of the available budget would be absorbed by physical programmes. However, the financing capacity is still very limited compared to the needs on the ground.
“The indicative ceiling for the Self-Help Housing Stimulant Assistance (BSPS) is only Rp 1.42 trillion, which is only enough for 50,000 housing units for coastal areas. Then, the ceiling for flats is Rp 10.28 billion, only capable of funding one tower with 44 units for the first year,” he stated.
Furthermore, the allocation for handling slum areas and sanitation is also considered inadequate. Yet the government still faces extensive slum area management needs in various regions.
“The ceiling for slum area and sanitation management is only Rp 8.19 billion, just enough to handle one location covering 15 hectares. This year we have 25 slum area locations that we are managing,” he said.
Fitrah stated that the total budget requirement for the Directorate General of Settlement Areas to support the 3 Million Houses Programme, the Asri Movement, and post-disaster rehabilitation reaches Rp 24.87 trillion. With the currently available ceiling, there is a budget shortfall of approximately Rp 23.37 trillion.
“The actual budget requirement to support all priority programmes of the Directorate General of Settlement Areas and the Ministry of PKP reaches Rp 24.87 trillion, so there is still a gap or backlog of budget shortfall amounting to Rp 23.37 trillion,” Fitrah stressed.