Deputy Minister of Housing and Settlement Areas, Fahri Hamzah, has revealed that the US$20 billion (Rp321 trillion) investment from Qatar has been delayed due to a reshuffle of the board of directors and commissioners at state-owned railway company PT Kereta Api Indonesia (KAI).

The Qatari investment is intended for the development of transit-oriented development (TOD) housing projects near train stations. The plan includes a joint venture with KAI to build one million housing units.

“Land selection will come later, as they want to target TOD developments, such as property projects near Kampung Bandan Station and others. The investors will deal with KAI as the landowner,” Fahri told a meeting at the Coordinating Ministry for Infrastructure and Regional Development on Wednesday, August 13, 2025.

He noted that property prices from the Qatari investment cannot yet be slashed by up to 50 percent of market prices, as there is no clear regulation on government-provided land for the project. Nevertheless, he has urged KAI to reduce land costs within the project’s property pricing structure.

According to Fahri’s calculations, the cost of a single low-cost apartment unit could be reduced to around Rp200 million if land is excluded from the pricing structure. He cited that land typically accounts for about 40 percent of housing costs in Indonesia. With average apartment prices in Greater Jakarta already exceeding Rp300 million, the government’s 3 Million Homes Program could lower prices to the Rp200 million range.

“We have calculated and found significant savings if the land component is removed from housing prices. That is why the government will take over the land in the 3 Million Homes Program,” Fahri told the International Conference on Infrastructure on June 12, 2025.

He acknowledged that such a policy would disrupt the domestic apartment market − but only for high-income buyers.

“This move should not be misunderstood. If the government doesn’t take over the land, then wealthy landowners should lower land prices, since they control the market,” Fahri said.

Under the plan, 80 percent of the funding for the 3 Million Homes Program will come from developers. The private sector will be expected to invest Rp240 trillion to build one million apartment units, while the government will renovate two million houses with a budget of around Rp70 trillion. Fahri confirmed that the Finance Ministry has approved the plan, meaning next year’s housing budget will approach Rp70 trillion.