Tito Optimistic that People's Housing Programme Will Drive Regional Progress

Home Affairs Minister (Mendagri) Muhammad Tito Karnavian is optimistic that the implementation of the People’s Housing Programme will indirectly drive regional progress. He believes that through this programme, the resulting economic impact will be able to increase Regional Original Income (PAD).

Tito conveyed this during a dialogue with developers at the Ahmad Yani Raider 600 Building, Manggar Baru Ward, Balikpapan City, East Kalimantan (Kaltim), on Tuesday (5/5). He explained that the central government has significant attention towards the public, particularly low-income communities (MBR), including in the area of people’s housing.

This attention is reflected through policies exempting the Acquisition Duty on Land and Building Rights (BPHTB), as well as building permit fees (PBG) for MBR. According to Tito, these policies need to be supported by local government apparatus (Pemda).

“In terms of duties, fulfilling the local government’s task of addressing poverty, the more housing is built by local governments or developers, the more poverty will decrease significantly,” said Tito.

Another benefit of the programme is optimising the economic ecosystem in the housing sector. For example, through increased developer activities in utilising construction raw materials.

In addition, the housing programme will also increase the economic value of a region, particularly in land utilisation. Thus, regions can optimise PAD increases, among others through the Land and Building Tax (PBB).

“So from the buildings, from PBB, the land and building tax perpetually. That is beneficial, PAD will benefit (the regions),” Tito concluded.