Indonesian government proposes to build 500,000 subsidised housing units by 2026

In 2026, Indonesia plans to build 500,000 subsidised homes. The initiative was announced by Minister of Housing and Settlement Areas Maruarar Sirait at a cabinet meeting in Jakarta, reports Antara News.

"We will make a significant leap if all (members of the) House of Representatives and government stakeholders agree to this proposal," Maruarar Sirait said.

According to the draft state budget for 2026, the ministry also intends to renovate two million homes with state support. Meanwhile, according to the ministry, there are more than 26 million uninhabitable residential properties in the country.

Earlier, Finance Minister Sri Mulyani Indrawati reported that in the first half of 2025, state spending on the subsidised housing programme under the Housing Financing Liquidity Facility (FLPP) scheme reached 18.8 trillion rupiah (approximately US$1.18 billion). These funds enabled the construction of nearly 116,000 homes for low-income families. The total funding for housing programmes in the 2025 budget amounted to 29.1 trillion rupiah (approximately US$1.82 billion).