October 22, 2025 | 07:59 am
TEMPO.CO, Jakarta - Indonesia's Coordinating Minister for Infrastructure and Regional Development, Agus Harimurti Yudhoyono (AHY), revealed that the backlog of housing in Indonesia is still significant. According to the latest data, there are around 9.9 million families do not yet own a house, while 26 million others live in inadequate dwellings.
"The backlog amounts to 9.9 million families do not yet own a house, and 26 million living in inadequate dwellings," stated AHY during the presentation of the achievements of the one-year period of the Coordinating Ministry for Infrastructure and Regional Development, in Jakarta, on Tuesday, October 21, 2025.
To address this issue, he mentioned that the government continues to expedite the implementation of the 3 Million Homes Program, which is one of the national priority programs. Based on data as of September 29, 2025, AHY claimed that several financing schemes show positive progress.
The Chair of the Democratic Party detailed that the Housing Financing Liquidity Facility (FLPP) scheme has materialized 200,809 housing units out of the targeted 350,000 units, which is approximately 57 percent. Meanwhile, the Self-Help Housing Stimulant Assistance (BSPS) has reached 23,420 units out of the targeted 45,073 units, with a realization rate of 52 percent.
Furthermore, there are 177,970 housing units that have obtained the Value-Added Tax Borne by the Government (PPN DTP) facility. AHY stated that the housing issue not only involves the availability of housing units but also relates to increasingly complex spatial planning policies, especially in densely populated urban areas.
The Indonesian government, according to AHY, faces a dilemma in aligning the need for housing development with other interests such as industrial growth and food security. Many productive lands, once used for farming and plantations, have now been converted into industrial and residential areas.
"The fundamental problem is spatial planning, given the limitation of space, especially in increasingly dense urban areas," he said.
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