President-elect Prabowo Subianto has announced plans to revive the Ministry of Housing, a move that would separate it from the current Ministry of Public Works and Housing (PUPR), signaling a strong commitment to addressing housing needs in Indonesia.
The idea to bring back the Ministry of Housing was shared by Hashim Djojohadikusumo, Head of Prabowo’s Housing Task Force, during the APEC Business Advisory Council meeting in Jakarta on August 31, 2024.
Hashim, who is also Prabowo’s younger brother, revealed that Prabowo has approved the establishment of the ministry, with a budget allocation included in the Draft 2025 State Budget (RAPBN).
“We have included the budget in our RAPBN for next year. The initial allocation is set at Rp53 trillion (US$3.4 billion) to start. Prabowo has agreed, we will reestablish the Ministry of Housing like before,” Hashim said.
Under this new structure, the PUPR ministry will be divided into two separate entities. The Ministry of Public Works will focus solely on infrastructure development, while the newly revived Ministry of Housing will concentrate on the construction of residential homes.
“This demonstrates Prabowo-Gibran’s commitment to housing development,” Hashim added, referring to Gibran Rakabuming Raka, the Vice President elect.
Prabowo has set an ambitious target of building two million housing units in rural areas during the first year of his administration.
The construction of these homes will involve small and medium-sized enterprises (SMEs), cooperatives, and village-owned enterprises, deliberately excluding large construction conglomerates from participating in this initiative.
“This policy will help create a new middle class, which is crucial given recent data showing a decline in the number of people in the middle-income bracket,” Hashim explained.
The revival of the Ministry of Housing under Prabowo’s administration aims to address the pressing need for affordable housing across Indonesia, particularly in rural areas, and to foster economic growth through the empowerment of local businesses and communities.
