Perumahan
Minister of Housing and Settlement Areas (PKP) Maruarar Sirait has received private sector social responsibility (CSR) funds of around Rp400 billion (US$24 million) that will be used to build 1,750 new houses and renovate 3,500 houses under the government’s 3 million housing program.
The Minister of PKP said that the 3 million housing program was achieved through contributions from four parties, namely the government, developers, the community and private CSR.
"We received the CSR commitment this month, approximately Rp400 billion," Maruarar said on Tuesday, April 22, 2025.
The construction of 1,750 houses is the result of CSR from three entities, namely PT Adaro Minerals in South Kalimantan, Agung Sedayu Group in Banten and PT Berau Coal in East Kalimantan.
Adaro and Berau each plan to build 500 housing units, while Agung Sedayu is committed to building 250 housing units.
Meanwhile, the renovation of 3,500 housing units will be carried out by three entities, namely Sugianto Kusuma or Aguan through the Buddha Tzu Chi Foundation, Prayogo Pangestu through the Barito Pacific Group and Anindya Bakrie through the Indonesian Chamber of Commerce and Industry.
Aguan plans to renovate 2,000 housing units in Banten, Jakarta, West Java and Central Java. Meanwhile, Prayogo will renovate 1,000 houses in Jakarta and Banten, and Anindya will renovate 500 houses in Jakarta, Banten, East Nusa Tenggara (NTT) and Bangka Belitung.
Previously, Maruar estimated that it would take Rp23.32 trillion to realize the target of building 3.44 million houses throughout 2025.
Maruarar said that his ministry is trying to lower the price of housing construction by eliminating the price of land. The strategy chosen is to use land confiscated by law enforcement officers.
He considered that the strategy of using confiscated land was important to increase the contribution of the state budget in the three million houses program. The use of confiscated land has the potential to reduce property development prices by up to 40 percent.
Maruarar cited that the target for the construction of 3 million housing units from the 3.44 million housing units planned this year will be aimed at poor people or those with incomes below Rp3.1 million per month.
Meanwhile, as many as 340,000 units are for people with incomes of Rp3.1 million to Rp8 million per month and 100,000 houses are for people with incomes above Rp8 million.
It is planned that all houses for the poor will receive installment subsidies worth Rp21.6 trillion. People with incomes of Rp3.1 million to Rp8 million will receive assistance in the form of interest rate difference subsidies, housing financing liquidity facilities and public housing savings with a total value of Rp1.48 trillion.
High-income people will receive insurance premium assistance worth Rp240 billion next year. Thus, according to him, the budget needed for the three million housing program next year reaches Rp23.32 trillion.
Maruarar also cited the strategy to utilize CSR funds from domestic companies. So far, the CSR funds disbursed by State-Owned Enterprises in 2024 have reached Rp11.2 trillion.
"I have called my business friends who can later help fund the three million housing program. Maybe the land is from the state and business friends can help build the houses," he said in October 2024.
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