Subsidised Housing Development Near Industrial Estates Hampered by Land Scarcity

The Chairman of the Regional Leadership Council (DPD) of the Association of Residential and Housing Developers (Himperra) Central Java, Sugiyatno, revealed that the highest percentage of subsidised housing distribution in Central Java is concentrated around industrial zones. However, demand levels cannot be met due to the limited availability of land.

Sugiyatno stated that throughout 2024, the realisation of subsidised housing distribution through the Housing Financing Liquidity Facility (FLPP) scheme by Himperra Central Java reached 2,786 units. The regions of Kendal, Pekalongan, and Solo Raya, including Sukoharjo, have emerged as the areas with the highest realisation percentages.

According to Sugiyatno, the demand for subsidised housing in these regions is notably high because they are situated near industrial zones. “What is clear from the developers’ perspective is that industrial areas possess a large consumer base,” he said during an interview in Semarang on Sunday (28/06/2024).

He further explained that the demand for subsidised housing near industrial zones increases every year. “If we look at the development of factories, such as those in the Kendal Industrial Park (KIK) and the Batang area, once they begin production, the employees will inevitably seek housing. Therefore, the increase is quite significant,” he noted.

Nevertheless, Sugiyatno mentioned that meeting the demand for subsidised housing in areas surrounding industrial zones still faces challenges, particularly regarding land availability. “For instance, in Kendal, it has become difficult to find suitable locations, even though interest remains high. This is because Kendal serves as a buffer for Semarang City. In Semarang itself, there are many industrial zones, especially in West Semarang, which borders Kendal,” he added.