Three Directorates General Under Minister Ara Complain to Parliament About Budget Shortfalls
Several Directorates General at the Ministry of Housing and Residential Areas (PKP) have collectively complained about the large gap between the indicative budget ceiling for the 2027 fiscal year and their actual programme requirements. This situation is seen as a challenge in pursuing the 3 Million Houses programme, which is one of the government’s priorities.
The three Directorates General that raised concerns to the House of Representatives (DPR) regarding the budget shortfall are the Directorate General of Urban Housing, the Directorate General of Rural Housing, and the Directorate General of Governance and Risk Control. All three have requested additional budgets to support the implementation of next year’s programmes. Overall, the three directorates general recorded a very large budget deficit compared to the needs proposed for 2027.
“Our indicative budget ceiling is Rp2.7 trillion, while our needs are Rp38.7 trillion, so we have a backlog of Rp35 trillion,” said Director General of Urban Housing Sri Haryati during a hearing with Commission V of the DPR on Thursday (25/6/2026). This budget gap is primarily related to plans for large-scale flat construction to meet urban housing needs. Meanwhile, the government is also facing significant needs to improve the quality of housing in rural areas.
Director General of Rural Housing Rini Dyah Mawarty revealed that her unit’s budget requirement reaches Rp41.2 trillion. However, the available indicative budget ceiling is only Rp4.74 trillion, most of which is allocated for the Self-Help Housing Stimulant Assistance (BSPS) programme. “The budget requirement for the Directorate General of Rural Housing for the 2027 fiscal year is Rp41.216 trillion, while based on the indicative ceiling, the available allocation is Rp4.747 trillion,” she stated.
Beyond construction and renovation, the issue of programme oversight is also a concern. The Directorate General of Governance and Risk Control assessed that the increase in housing development targets must be balanced with strengthened supervisory systems to ensure effective and accountable implementation. “For the Directorate General of Governance and Risk Control, the indicative ceiling has decreased again to Rp12.9 billion. We are proposing a requirement of up to Rp67 billion,” said Acting Director General of Governance and Risk Control Roberia. The additional budget is needed to strengthen monitoring, evaluation, data management, and risk control across the programmes run by the Ministry of Housing and Residential Areas. “We also request support for increased monitoring and evaluation to achieve efficiency and prevent corruption within the PKP,” he added.