Minister of Public Housing and Settlement Areas, Maruarar Sirait, has withdrawn his controversial proposal to reduce the size of subsidized housing units, following mounting criticism from lawmakers and the public.

Speaking before a hearing with Infrastructure Commission V of House of Representatives (DPR) on Thursday, July 10, 2025, Maruarar apologized for floating the idea, which sparked widespread debate over housing standards and affordability.

"After receiving extensive feedback, including from members of Commission V, I would like to openly apologize and officially withdraw the proposal," Maruarar said.

The initial plan had included showcasing a prototype of a 14-square-meter subsidized home, featuring one bedroom on a 25-square-meter plot in a Jakarta shopping mall as part of an effort to gauge public response.

Maruarar had previously said that he would cancel the plan if public sentiment proved unfavorable.

“We would like to listen to the aspirations of young people who want to live in urban areas but are constrained by the high cost of land. The intention was good to make housing more accessible for the younger generation, but clearly, the execution needs to be reconsidered,” he said.

"This was a lesson learned. When dealing with public policy, especially in the housing sector, we must be more thoughtful,” he added.

Members of Commission V welcomed the minister's openness to dialogue and responsiveness to public feedback, but also urged stricter adherence to regulatory frameworks in the formulation of future policy.

The incident has reignited broader discussions on how to address Indonesia’s urban housing crisis, particularly for millennials and Gen Z, without compromising basic living standards.

Despite acknowledging that the idea was aimed at addressing urban housing challenges, the minister emphasized that any future initiatives must comply with existing regulations and public expectations.

Maruarar also pledged to investigate whether the demonstration unit violated any existing rules. “If it turns out there were regulatory breaches, I will consult with my director general,” he said.

According to the Ministry of Public Works and Public Housing Decree No. 689/KPTS/M/2023, the minimum permitted building size for subsidized housing is 21 square meters, with a maximum of 36 square meters. The land area must range between 60 and 200 square meters well above the 14-square-meter prototype previously proposed.