The government is said to have disbursed IDR 97.44 trillion in subsidies to the Home Loan Liquidity Facility (KPR FLPP) mortgage program through state-owned enterprise PT Sarana Multigriya Finansial (SMF) from 2010 to June 2022.
SMF President Director Ananta Wiyogo said the effort was proof of the state’s presence in encouraging the availability of decent and affordable housing for all Indonesian people, especially low-income people (MBR). “The FLPP program has succeeded in supporting the ownership of as many as 1.1 million housing units spread throughout the archipelago,” he said in a written statement on Monday, August 22.
According to Ananta, this is part of the implementation of the government’s obligations set out in the 1994 Constitution, Article 28H, paragraph 1, which states that all people live and live in physical and spiritual prosperity. It states that we have the right to have a place and a place to live. You have the right to a good and healthy living environment and medical care.
“In addition to fulfilling the mandate of the 1945 Constitution, the availability of access to decent and affordable housing also plays an important role in creating the quality of healthy and superior human resources, which will ultimately have a positive impact on economic development,” he said.
However, Ananta said providing housing for those in need is no easy task. Indonesia is the fourth most populous country in the world, with 55.9% of its population living in urban areas.
“SMF as the Ministry of Finance’s special mission vehicle in this program plays an important role in easing the financial burden by financing the 25 percent portion of FLPP mortgage funding so that the government only provides 75 percent of the total FLPP funding from the original 90 percent,” he said. Furthermore, Ananta said that from August 2018 to June 2022, SMF was able to raise Rp11.2 trillion FLPP mortgage funds for 318,413 houses.
“SMF is committed to being able to continue to contribute to support the government’s efforts to support decent and affordable housing,” he concluded.
At separate places, Linda Rahmawati, an economic observer said the Housing Financing Liquidity Facility (KPR FLPP) is an urgent and strategic program that must be done by the government and banking sector to solve the problems of demanding housing development which can not be avoided during the rise of national consumption and the growth of people.
“But the Housing Financing Liquidity Facility (KPR FLPP), the government and banking sector must be attentioned and carefully to give loan because if the Housing Financing Liquidity Facility (KPR FLPP) does not run well, it can make national economic climate does not stable and creating “economic bubble” and unpredicted national debt bottleneck,” she said further.
