Indonesian Govt Plans Renovation of Uninhabitable Houses

7 hours ago 4

TEMPO.CO, Jakarta - The Indonesian Ministry of Social Affairs will establish the Integrated Simple House program. According to Social Affairs Minister Saifullah Yusuf, the aid recipients are families who own uninhabitable houses with their land.

Gus Ipul said that the government would help these families by providing the materials needed to renovate their homes and make them habitable.

"Renewing one house costs between Rp15 million and Rp20 million. It is not possible with a new house," said the General Secretary of PBNU on Friday, July 4, 2025.

Due to budget limitations, Gus Ipul encouraged the neighbors of program participants to cooperate so they could help fund the construction of uninhabitable houses.

For example, he said, if the Ministry of Social Affairs provides renovation assistance of Rp15 million, the community could collectively add funds of around Rp10 million to Rp15 million, so that the total renovation cost could be higher. "Because of mutual cooperation, the result could be 25 million or 30 million," said Gus Ipul.

In addition to being a residence, Gus Ipul said that this integrated simple house could be used as a business place for the recipients of assistance.

Previously, Vice Chairman of the Board of Trustees of the Gerindra Party, Hashim Djojohadikusumo, stated that the government of President Prabowo Subianto would build 2 million houses in rural areas and 1 million houses in urban areas over the next five years. He said that the program not only includes the construction of new houses but also the repair of existing houses.

"Our idea is to provide financing for our people who do not have a house or have a house that is uninhabitable," said the biological sibling of Prabowo in an Economic Discussion at the Chamber of Commerce and Industry (Kadin) Tower, Kuningan, South Jakarta, on Monday, October 7, 2024.

The head of the government's housing task force under Prabowo explained that uninhabitable houses are characterized by shanties that lack access to water and the internet. Hashim said that the government would provide support to farmers and fishermen with the cost or credit for house renovations to address this issue.

Generally, Hashim said, many people already have land, so land procurement or acquisition is no longer a problem. Therefore, the government chose to fund the construction or repair of 20 to 30 houses each year. If multiplied by the need for 70,000 houses each year, the number of houses to be built or renovated would reach 1.5 million to 2.25 million houses.

In order to carry out this plan, the CEO of the Arsari Group revealed that he had met with several parties. They include PT Bank Tabungan Negara (Persero) Tbk, PT. Sarana Multigriya Finansial (Persero) or SMF, to Perum Pembangunan Perumahan Nasional or Perumnas. He even claimed to have met with the CEO of BTN, Nixon Napitupulu, four to five times to discuss this program.

In addition to domestic state-owned enterprises, Hashim said he sought partnerships with companies from Singapore, namely the Housing & Development Board (HBD). This state-owned property company in Lion City will advise on Prabowo's housing procurement program. As a consultant, he appointed Surbana Jurong Pte Ltd, a subsidiary of Temasek Holdings engaged in urban development and infrastructure consultancy in Singapore.

"It may not be achievable in the first year, but in the steady state, maybe in the third year. There are already several foreign investors and financiers. From Qatar, I have met them. From Singapore, I have met them," he said.

Based on this program, Hashim quoted BTN and government data which stated that there are still 10.7 million families waiting to have houses. Additionally, 27 million families are living in uninhabitable homes. This means, he said, 37 million families are waiting to live in habitable houses. With this program, he claimed that the target for economic growth will not only reach eight percent but could reach 9 percent.

"This housing is one of the programs that has not been maximized, we have to admit it. In 2015, the Government set a program and a target of 1 million units every year," said the businessman who was recently appointed as Chairperson of the Advisory Board of the Indonesian Chamber of Commerce and Industry.

Hashim asked major contractors not to be involved in the rural housing development and renovation program. He said that the program would be dedicated to micro, small, and medium enterprises (MSMEs), cooperatives, and Village-Owned Enterprises (BUMDes). However, those conglomerates could be involved in developing apartments in urban areas.