Subsidised Housing Development Near Industrial Estates Hampered by Land Scarcity

The Chairman of the Regional Leadership Council of the Indonesian Association of Settlement and Public Housing Developers (Himperra) for Central Java, Sugiyatno, has revealed that the highest percentage of subsidised housing distribution realisation in the province is located around industrial estates. However, the level of demand cannot yet be met due to limited land availability. Sugiyatno stated that throughout 2026, the realisation of subsidised housing distribution through the Housing Financing Liquidity Facility (FLPP) scheme by Himperra Central Java reached 2,786 units. The areas of Kendal, Pekalongan, and Greater Solo, including Sukoharjo, were the regions with the highest realisation percentages. According to Sugiyatno, the demand for subsidised housing in these areas is considerably high because they are situated around industrial estates. “What is clear from the developers’ perspective is that industrial estates have many consumers,” he said during an interview in Semarang on Sunday (28/6/2026). He disclosed that the demand for subsidised housing around industrial estates increases every year. “Because if we look at it, the development of factories like those in the Kendal Industrial Park (KIK) and the Batang area, once they start production, their employees will certainly look for housing. So the increase is quite significant,” he said. Nevertheless, Sugiyatno mentioned that fulfilling the demand for subsidised housing in areas surrounding industrial estates still faces challenges, particularly regarding land availability. “For example, in Kendal, it is already difficult to find a location there, even though interest remains high. This is because Kendal acts as a buffer zone for Semarang City. Semarang City has many industrial estates, especially in West Semarang, which borders Kendal,” he stated.