KBRN, Jakarta: Indonesian President Prabowo Subianto is scheduled to attend the launch of 25,000 subsidized housing units in Bogor, West Java. The symbolic launch will be joined simultaneously by 30 provinces across the country.

“I invited him, and he kindly agreed to attend the mass signing for 25,000 subsidized homes. The launch will take place on Monday, September 29, in Bogor Regency, with participation from over 30 provinces,” said Minister of Housing and Settlements (PKP) Maruarar Sirait (Ara) during a press briefing at the Presidential Palace in Jakarta, Tuesday, September 16, 2025.

A total of 80 locations are expected to take part in the simultaneous launch. The subsidized housing program will be implemented by the Tabungan Perumahan Rakyat or Tapera (Public Housing Savings Fund).

Minister Ara noted that the program is highly popular among low-income communities. One reason is the regulatory ease introduced by President Prabowo, such as the waiver of Building Approval Permits (PBG). Another initiative includes the exemption of the Land and Building Acquisition Tax (BPHTB) for low-income households.

In addition, President Prabowo is also expected to attend the launch of the new Kredit Usaha Rakyat Perumahan or KUR Perumahan (Housing Microcredit) program.

“This is the first time in history we’ve had a KUR program specifically for housing, and it’s planned that the President will attend. We’re preparing the venue, likely somewhere in Java, along with the banking partners,” Minister Ara added.

The government has allocated IDR 130 trillion (USD 8.4 billion) for the KUR program, divided into two schemes. First, IDR 117 trillion for the supply side, targeting developers, contractors, and building supply stores categorized as MSMEs. Second, IDR 13 trillion for the demand side, aimed at small business owners in sectors like homestay, culinary, and fashion.

Under the supply-side scheme, the government will subsidize 5 percent of the interest rate. For the demand-side, eligible borrowers can receive loans up to IDR 500 million with a 6 percent interest rate.

“It’s a fantastic initiative. We hope this flagship program will energize the housing sector and boost budget absorption,” Minister Ara said.

Earlier, Deputy Minister of Housing and Settlements Fahri Hamzah shared that President Prabowo had given firm instructions to reduce housing prices. Fahri said the President’s message continues to guide his work in the sector.

“President Prabowo told me, ‘Lower housing prices, Fahri. We can’t build homes on private land. It’s just too expensive,’” Fahri recalled during a public discussion titled Housing for All: Government Strategies to Accelerate Access to Decent Living, held in Jakarta on Wednesday, August 6, 2025. ***

Translator: Diffa Sephiawardhani

Editor: Sri Wahyuni