Sales of Subsidised FLPP Homes Plunge 32%, Developers Cite Stigma and Shrinking Purchasing Power

Sales of subsidised homes through the Housing Financing Liquidity Facility (FLPP) have plummeted, with only 77,532 units sold by mid-June 2026, representing just 22.15% of the government’s annual target. This figure marks a 32% drop compared to the 114,799 units sold by the same period last year. Associate Director of Leads Property, Martin Samuel Hutapea, explained that developers are struggling against a downturn in public purchasing power. “Subsidised housing faces a purchasing power challenge. Sales statistics are indeed down, and I predict this year will be more pressured than last year,” Martin stated. He noted that rising material costs are also squeezing developer margins, making it difficult to raise selling prices without further alienating buyers. Samuel Huang, Treasurer General of Realestat Indonesia (REI), highlighted an additional hurdle: a social stigma that subsidised homes are not fit to live in. To combat this perception and improve quality, his company Infiniti Land is collaborating with the University of Indonesia’s School of Postgraduate Sustainable Development. The partnership focuses on researching green housing concepts, proper spatial planning, and earthquake-resistant structures. “By paying attention to all aspects of sustainability from planning to execution, we hope to provide a reference for subsidised housing developers and help the government achieve its target of reducing the 9.9 million housing backlog,” Samuel said.