Josi: If it keeps on like this when will we own a home? (writing on roof reads "Subsidised Housing")

The government is struggling to meet President Prabowo Subianto's target of building 3 million homes a year, with progress being slowed by financially strained state contractors and sluggish mortgage and property lending.

While potential assistance from countries such as China could help bridge the gap, analysts warn that financially constrained homebuyers, coupled with regulatory and ownership uncertainties, could make the ambitious target increasingly difficult to achieve.

The target is supposed to be fulfilled through multiple programs, including subsidised housing, home renovations and easier access to housing credit. However, with less than four months left in 2026, Public Housing and Settlements Minister Maruarar "Ara" Sirait said several regions still need to improve the implementation of their programs.

As of September 17 the Independent Housing Stimulus Assistance (BSPS) program, which helps homeowners renovate their houses, had reached only 32.5 percent of its 400,000-unit target for 2026. The government plans to increase the target five-fold to 2 million units in 2027.

Meanwhile, the Housing Financing Liquidity Facility (FLPP) had provided 18.75 trillion rupiah (US$1.05 billion) in financing for 150,750 homes as of September 16, reaching only 43.1 percent of this year’s 350,000-unit target.

[Abridged from a Jakarta Post article titled "Indonesian government under pressure as 3 million-home drive falters" (https://asianews.network/indonesian-government-under-pressure-as-3-million-home-drive-falters/).]