Unoccupied Subsidized Houses in Indonesia Reach 60-80 Percent
The Ministry of Public Works and Public Housing (PUPR) reported that many subsidized homes are unoccupied, with a staggering 60-80% vacancy rate. Additionally, the government subsidies intended for low-income housing are often misallocated, with the recipients not being the rightful beneficiaries.
"The recipients are not the ones who are entitled to it," revealed the Director General of Housing at the Ministry of PUPR, Iwan Suprijanto, during his remarks at an event discussing Property Technology as an Accelerator for National Economic Growth in Jakarta on Saturday, August 24, 2024, as reported by Kumparan and Kompas.com through Antara.
Despite the high demand from the public, housing construction for low-income communities continues to be carried out by developers. This year, the government has allocated subsidies through the FLPP (Housing Financing Liquidity Facility) scheme for 166,000 housing units.
According to Iwan, this quota was almost depleted by August. Based on data from BP Tapera, as of August 15, 2024, the realization of FLPP subsidized mortgage disbursement had reached 111,784 units, with a total value of Rp13.62 trillion.
Therefore, the Ministry of PUPR supports the developers' request to increase the FLPP quota to at least the same level as last year, which was 226,000 units. "The government supports the increase in the FLPP quota, but the distribution must be targeted," Iwan emphasized. However, he did not provide an explanation for the high number of unoccupied subsidized homes and the misalignment of subsidy distribution with the targets set by the Supreme Audit Agency (BPK).
Consequently, the Ministry of Public Works and Public Housing (PUPR) endorses the developers' appeal to raise the FLPP quota to at least match last year's figure of 226 thousand units.
"The government is in favor of increasing the FLPP quota; however, it is essential that the distribution is effectively targeted," Iwan emphasized. He did not elaborate on the reasons behind the unoccupied subsidized housing or the discrepancies in subsidy distribution relative to the targets established by the BPK.
Through the FLPP KPR program, individuals with low incomes can acquire subsidized housing via a credit scheme that offers an interest rate of merely 5 percent per annum for a maximum duration of 20 years. Additionally, they receive down payment assistance amounting to IDR 4 million and are exempt from VAT.
During the event, Iwan also highlighted the housing backlog statistics, which, according to BPS, have decreased from 12.7 million to 9.9 million in the previous year. He noted that these figures are merely indicative. Until.
