State Land Bank Prepares 120 Hectares of Housing Land Across Four Regions
The State Land Bank (BBT) is committed to accelerating affordable housing provision by allocating approximately 120 hectares of land reserves across various strategic regions. This land will be focused on developing residential plots for low-income communities.
The Acting Head of the BBT, Hakiki Sudrajat, stated that single-family house development has become a priority as it is considered more aligned with current market interests and conditions. The agency continues to postpone apartment development whilst monitoring the balance between supply and demand in the field.
“Our focus is more on residential plots. Apartments are still on hold for now. We need to observe the market first—how supply and demand develop,” Hakiki said in Jakarta recently.
Hakiki explained that at least four primary regions have been prepared by the State Land Bank for this housing project: Cianjur (West Java), Purwakarta (West Java), Batang (Central Java), and Batu Bara (North Sumatra).
In the management scheme, the land holds the status of Land Management Rights (HPL) owned by the BBT. Meanwhile, developer partners working with the agency will construct housing with Building Use Rights (HGB) status above this HPL.
According to Hakiki, a key attraction for prospective buyers is the opportunity to upgrade the property ownership status. He explained that owners of subsidised housing on BBT land can apply for a status upgrade to Full Ownership Rights (HM) after a certain period has elapsed.
“Building use rights above management rights. After ten years it becomes full ownership,” he affirmed. These homes will subsequently be marketed through the Housing Financing Liquidity Facility (FLPP) scheme with an estimated selling price range of 150 million rupiah.
Regarding property transfer regulations, the BBT applies a minimum ownership requirement of 10 years before a house can be resold. However, Hakiki signalled that this regulation could be more flexible depending on conditions on the ground, with the possibility of acceleration to 5 years if the situation permits.
The BBT is opening opportunities for local developers and Regional State-Owned Enterprises (BUMD) to participate in this development. The BBT does not use a closed bidding system; instead, it conducts land exposure so interested parties can directly participate.
The involvement of local developers is considered highly crucial because they possess deep understanding of regional characteristics and local material supply chains, enabling the construction process to proceed more effectively and efficiently.